Frequently Asked Questions

I've missed a few mortgage payments, what will happen?
Your home may undergo the foreclosure process, but there are ways for you to prevent this from happening.
What should I do once I'm behind on my mortgage payments?
Don't wait, get help early! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. If you even see the possibility of missing a payment, contact your lender and explain your financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues that impede your payments, providing your lender an incentive to find a proper "work out" resolution, or to begin modifications to your loan.
What is a "work out" resolution?
Commonly, the term "work out" resolution is an agreement where you continue making payments on your past due amount over a period of time, or a modification to your loan to lower your interest rate, or an extension loan period that will help lower your payments.
I am in the foreclosure process, should I stay in my home or leave?
You should contact your attorney to determine the best course of action. Abandoning your property may have severe negative consequences on your qualification for assistance.
Why would my lender rather help me stay in my home than foreclose?
There are several reasons your lender may be interested in other options than foreclosure. Most times, the lender will take substantial financial losses, on average $50,000, from a home foreclosure. Mortgage companies are not interested in owning and selling homes.
How common is foreclosure?
Unfortunately, foreclosures are becoming more common and happen to many Americans. Although the number of foreclosure filings vary from state to state, and even from one financial quarter to the next, the number of filings nationally in 2008 was 3.1 million for 2.3 billion U.S. properties. This is an 81% increase from 2007 and represents 1 in 54 housing units in America having received at least one foreclosure filing during 2008.
Is a Short Sale right for me?
If you add up your total monthly expenses, including your mortgage, property tax payments, insurance, car payments, utilities and food and compare that to your take-home income, how much longer can you afford to keep up with your payments? If you have an adjustable rate, and the payment is going up, how long can you afford that? Is it worth prolonging your current financial situation?-especially if home values in your area continue to decline?
How much would it cost me to sell my home in a Short Sale?
Nothing! All fees and commissions are assumed by your lender-NOT YOU. Your contract will specifically read: "Seller's agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller" Seller shall not be required to deposit funds to close escrow.
What is a financial hardship?
A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are: *Separation or Divorce *Medical Bills *Inability to work due to health reasons *Death of Spouse *Job Relocation *Reduced Income or Unemployment *Business Failure
My property needs a lot of repair work. Can I still do a Short Sale?
Yes. A lender is often less likely to want to repossess (foreclose on) an Orange County home that needs work-it would make it harder for them to sell it later. Lenders are not in the "home repair" business. They do not want the responsibility. A home in rough shape may serve as an incentive for a lender to do a Short Sale.
Do I have to deal with the bank throughout the Short Sale process?
As your agent, we take on the task of communicating and negotiating with your lender relieving you of that stress and burden.
Do you have any other advice?
Always be wary of potential scams. Any person or company offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scammer include anyone who charges a fee before any services are completed.

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