Loan Modifications
Before considering Short Sale or Foreclosure, the first step for most homeowners in trouble is to seek a loan modification, allowing them to stay where they are.
DO NOT PAY A LOAN MODIFICATION COMPANY OR ATTORNEY WITHOUT FIRST CHECKING FOR FREE SERVICES
The Federal Government has given out millions of your tax dollars to provide FREE assistance for loan modification. Check the HUD web site linked to the HUD Approved Loan Modifiers button on this page to find a HUD approved loan modifier. The Riverside Fair Housing Council, for example, is on the HUD approved list. Many speak both Spanish and English. There are pay for service loan modification companies that are ethical and do a good job, but there are many more who do not. FREE is a very good price and is no risk to you. If modification happens WONDERFUL. If not at least it didn't cost you anything to try when using a free service.
Though there are many real estate agents and real estate agencies providing such service, we believe that seperation of teh and loan sides are better for business and better for the client. Good lenders don't also have the time to be good agents and vice versa. It is tough enough, given today's challenges, to be good at what you are supposed to be doing full time.
There are many steps to a loan modification and a significant amount of paperwork. It is like applying for the loan all over again. But don't get discouraged. The outcome, if it means staying in your home, is worth the wait.
ELEVATE provides Loan Modification, Short Sale Listing and Foreclosure consultation for FREE. As we've said before, FREE is a good price. In the event PSR is successful in arranging a modification, a fee of $375 will be charged, but only if the modification actually happens. Some of our agents were even career bankers before getting into real estate. Our broker was a Regional Vice President for a very large international bank. We really understand the language and processes of lenders and have been successful in arranging modifications.
Short Sale Listings will have the customary commission, paid when the property is sold and closed, but no additional fee will be charged. Foreclosure consulting, explaining the process, timelines and what can be expected, is always FREE. We are here to help and make long term friends. Satisfied clients tell others about us adn the majority of our business is from referrals by happy clients, family and friends.
If loan modification does not happen, your next best alternative is Short Sale. Please click on Short Sale above for more information.
Lease Purchase Options
Be very careful about these. There are lots of cons out there regarding land sale contracts, lease purchase options, land trusts, etc. that get control of your property without giving you much in return, with the promise that they will fix everything. 90% of the time that does not happen. Most of the time sleazy cons will get control of your property, rent it out to someone else, keep the rent and never make your house payments. You are no better off under these conditions, and neither are the renters who will be booted out when the lender forecloses.
All of that said, there are some legitimate companies out there using the lease purchase option properly. Consult with your favorite REALTORŪ before signing anything. We, at Pacific Shield Realty would be more than happy to review the documents with you.
Deeds in Lieu of Foreclosure
There is an alternative for some called a Deed in Lieu. This means giving the property back to the lender without going through the foreclosure process. Negotiate for lender concessions before considering this option. Ask for more time to get out. FOR SURE demand that the lender release you from all recourse liability. If you get nothing in return, there is no perceptable benefit to signing a Deed in Lieu of Foreclosure.
.
