Loss Mitigation with a Real Estate Expert

Many home owners in Phoenix, Arizona are concerned about all of the foreclosures going on in the country today. However, they needn’t be worried as loss mitigation to avoid foreclosure is available to them if they know where to look. Many lenders are now working with home owners in difficult positions to find loss mitigation through loan modifications and the short sale of their home. There are many positive things to be said about short sale as a method of loss mitigation for the home owner.

Your lenders loss mitigation department can help you come out of your current financial situation without too much negative effect. When you contact your bank’s loss mitigation department, you should tell them that you are having trouble and are seeking a loan modification or that you intend to short sell your home. Using one of these two techniques in conjunction with your bank’s loss mitigation department can ensure that you have a home to live in without being thrown out on the streets. The loss mitigation department at your bank has long used the loan modification process to help home owners get bank on track with their mortgage payments. However, short sales of homes has becoming a widely accepted way to avoid foreclosure and many loss mitigation departments are acceptant of this process to cut their losses and keep costs down for the bank.

Some thing to consider when you contact the loss mitigation department…

Although many lenders in Phoenix, AZ will tell you that the loan modification process is your best option, it is, in fact, their best option. They urge home owners to use loan modification because it nets them more money in the long run. The problem with loss mitigation through a loan modification is that most home owners can not afford to make the payments of a new loan schedule just like they couldn’t with their old payment plan. Also, if you do find a loan payment that is affordable through loan modification from the loss mitigation department, you will find yourself paying more money over the long haul because the bank often extends the life of your home.

It is also important to consider why you would want to pay the mortgage on your home that is no longer worth the original loan amount. For example, you took out a $250,000 mortgage to buy your home (valued at $250,000 at the time of purchase) but the value of your home is now just $100,000.

With this type of upside down mortgage, the short sale is certainly the best option for you. With the help of a real estate expert knowledgeable in the short sale process, you can often times sell your home for its current market value and use the entire offer amount to pay off your current mortgage loan. Despite the fact that the offer doesn’t cover the full payoff amount of your mortgage, the bank will accept it as payment in full.

Have a real estate expert explain the details of a short sale transaction to understand the full benefits. Loss mitigation through short sale of your home is clearly the best option.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Using a Mortgage Short Sale Program

A mortgage short sale program in Phoenix, Arizona is a service offered to many homeowners of the Phoenix Arizona area who are not able to make the payments on their mortgage with their current lender. The home owner wants to stop or avoid foreclosure. Mortgage short sale program essentially means selling your current property, which you have a loan for, to a seller at a lower price than the amount that would pay off your mortgage. The mortgage short sale has been proven to be very helpful for the homeowners who want to keep from doing major damage to their credit.

Some Features of the MORTGAGE SHORT SALE Program:

1. The mortgage short sale provide relief to all the homeowners in Phoenix, AZ who are in a difficult financial situation.

2. Mortgage short sale is a quick solution to avoiding foreclosure proceedings.

3. The home owner using a mortgage short sale can get bank on their feet in a shorter time period.

Benefits of a MORTGAGE SHORT SALE are:

· You have the ability to get loans from a bank or lender sooner if there is not a foreclosure on your credit record

· The mortgage short sale relieves you of debt and your mortgage would be settled with a smaller amount that if you ran the course of the payments.

· The buyer will get a good deal on your home that is probably in move in condition.

MORTGAGE SHORT SALE Process for Property Owners:

· Contact your lending institution to get the rules and guidelines of a mortgage short sale. We recommend that you find a real estate agent that has experience in dealing with a mortgage short sale.

· Your real estate agent can help you provide the bank with all of the necessary documents needed to execute a mortgage short sale.

· The lender will look at the documentation that specifies the proposed offer for sale of the property, current loan amount with your lender including overdue payments and fees, your real estate agents commission and fees that is taking care of the mortgage short sale.

· The home owner will need to write a hardship letter to the lender noting the reasons the need to execute a mortgage short sale in your situation. Along with your hardship letter you should also include the following; current and past bank statements, income documents such as pay stubs and the like to show the bank that you need to use the mortgage short sale program and that you can not make the mortgage payments.

· Your lender will probably negotiate on the sale price of your home with the real estate agent that you have chosen and finalize the purchase agreement that will be compared to the property value according to the markets current status.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Consider a Mortgage Short Sale to Save Your Credit

Most things in Phoenix, Arizona today revolve around credit. Just ask a person that has poor credit or no credit at all. Poor credit or no credit can keep you from buying a car, renting an apartment or even getting a job. If you are a home owner facing the loss of your home, a mortgage short sale can save your credit. A mortgage short sale should be the first thing you consider in lieu of bankruptcy or foreclosure of your home.

The mortgage short sale process in Phoenix, AZ is probably something that you have never heard of or know little about. Although the process has been around for years, it has not been widely used until recently with the collapse of the banking industry and the housing market. The mortgage short sale can help home owners get out of their mortgage liability and retail relatively good credit.

Home owners who have a mortgage that is greater than their home’s current value can qualify for a mortgage short sale. There are very few prerequisite that need to be met to utilize a mortgage short sale. First, you must be late on your payments. It also helps if you have little to no savings, because you will be asking your lender to take a loss on the loan.

In most cases, the owner will have the balance of the home “forgiven” as soon as the home is sold in a mortgage short sale. In order to apply for a mortgage short sale, you must contact your bank and you should also contact a mortgage short sale specialist to help you through the process. Your lender will request some documentation and information so you can be approved.

It is highly recommended that you find a real estate expert with experience dealing in mortgage short sale procedures. Lenders are more likely to deal with a person like this than with the home owner. And, obviously, the real estate expert can expedite the sale of your home.

When it comes to a mortgage short sale, your credit score will not be tarnished as much as if your home went into foreclosure. When your mortgage short sale is complete, your credit report will say "pre-foreclosure in redemption" and may reduce your FICO score by around 100 points.

With a foreclosure, your credit report will have a higher giant impact of at least a 300 point reduction on your score. This fact alone should be sufficient reason to execute a mortgage short sale.

Because of this impact on your credit score, you can resume your life without the burden of poor credit in as little as two years. The result of a foreclosure will take you at least ten years to rebuild your name and credit score. Without a respectable credit score, your only option in maneuvering around this world is to pay cash for everything.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Loss Mitigation Part 2 The Best Way To Avoid Foreclosure

With the abundance of horror stories surrounding Loss Mitigation Departments in Phoenix, Arizona and their inability to keep up with an insane number of requests from defaulting customers, there has to be another way of loss mitigation that can avoid the lender completely.

We truly have an option for loss mitigation that can lead you aware from those horror stories and to a place that will, in the end, result in a better outcome to your current financial situation.

*** Editor’s note: It is important that your banks loss mitigation Department knows about your financial troubles. We are not suggesting through the process described below that you stop speaking to your bank or lender. We are merely suggesting that you find a way to avoid foreclosure by means of another process. The bank and its loss mitigation department will still be involved. However, through the process below, you can remove much of the work from their already full plates.

One of the most successful means of loss mitigation in Phoenix, AZ in recent months has been the short sale of your home. With the help of a real estate agent familiar with the short sale process, the loss mitigation department can play a smaller, but still important role in getting you out of your current mortgage problems.

With the short sale as a means of loss mitigation, a real estate expert will help you avoid foreclosure and he or she will help the bank trim their losses, which is exactly what the loss mitigation department does.

Short sales as a means of loss mitigation are prevalent with home owners that find themselves in the following situations…

-unable to pay their mortgage for a variety of reasons, most commonly loss of job or higher payments because of Adjustable Rate Mortgages

-home owners in upside down mortgages

How does a short sale work?

-you, as the home owner in search of loss mitigation, find a real estate expert to help you with the short sale of your home

-the real estate expert lists your home on the market and finds a buyer that will probably make an offer that is not enough to pay off the mortgage (Bear in mind that you are not searching for a low offer, but with falling home values, it is almost a certainty that the offer will be less than the payoff amount of the mortgage)

-the real estate expert and the home owner contact the loss mitigation department and notify them that they would like to execute the short sale of the home.

-the loss mitigation department, in an effort to cut their losses (which is what they are designed to do) will accept the lower offer as payment in full and forgive the remainder of the balance due on the mortgage.

The benefits of this process are too numerous to mention. It is strongly recommended that you look into this process with a qualified real estate expert that deals with short sales.

Loss mitigation help is in high demand during these trying times. Lenders have departments to handle loss mitigation, but they are overwhelmed. We strongly suggest that you contact a real estate expert regarding the short sale of your home today.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Loss Mitigation Part 1, Banks Overwhelmed

Before the spring of 2009, there was no standard set of rules for loan modifications in the United States or in Phoenix, Arizona.

Each lender in Phoenix, AZ had its own rules as to how they wanted to handle loan modifications. In most situations, the loss mitigation through loan modification process heavily favored the banks. Their main concern was to find a way to recover the money that a home owner was behind in payments. Generally, the banks would either increase the monthly payment or extend the term of the payments so that those late payments would just be paid off at the end of a loan. Usually, when the loss mitigation through loan modification process called for increased payments, the foreclosure of a property was only delayed by a few months, because there was no way that they could make a higher payment.

A new program, announced in the spring of 2009 by the Obama administration has changed the loss mitigation through loan modification process. The guidelines for loss mitigation through loan modification have changed. This program mandated that mortgage payments be reduced to just thirty one percent of the home owner’s income. For many Americans, this meant that they could once again afford to pay their mortgage payments. The loss mitigation through loan modification process, appeared to be a great helping hand.

However, the program only covers mortgages through Fannie Mae, Freddie Mac and the FHA, but it is widely thought that most other lenders will choose to follow the guidelines for loss mitigation through loan modification as laid out by the Obama Administration. The Making Home Affordable Modification Program has placed the focus right on loss mitigation through loan modification. Many in danger of losing their homes to foreclosure didn’t even know what loan modification was.

Since the program’s inception, there have been scores of people flooding into banks to request loss mitigation through loan modification. With all of these people facing the time crunch to avoid foreclosure, this has placed the burden of a national housing crisis squarely on the backs of the Loss Mitigation Department at your bank and every bank.

Before the housing crisis and the crash of the real estate market, foreclosures were not very common. Most lenders and mortgage providers kept a staff of just a few people to handle loss mitigation. Foreclosures were not very common and loan modifications were even less common.

However, the times have certainly changed. Banks and lenders have increased the size of their loss mitigation departments exponentially. This has meant thousands of people needed to be trained to work with loan modifications and all of the other tasks that fall to the loss mitigation department at a lending institution.

There are horror stories abound regarding customers having to hound and hassle Loss Mitigation Departments to get their paperwork pushed through to avoid foreclosure. Loss Mitigation Departments are currently still understaffed, under experienced, and overworked.

Read Part 2 of our Loss Mitigation Report to Find a Better Solution to avoiding foreclosure.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Many Loss Mitigation Departments Open To Short Sale

I’m sure that each of you loves the home in Phoenix, Arizona that you live in and would never want to lose that home to foreclosure. However, with the state of the economy and the housing market, many Americans are preparing to face losing their homes. The good news is that foreclosure in Phoenix, AZ is avoidable through loss mitigation. The key is to take action before the bank does. As soon as you miss one payment, the clock starts ticking. So, when you realize that you can not make payments on your home mortgage anymore, it is time to contact the loss mitigation department at your bank. Their job is to help keep the bank from losing money.

With a foreclosure, the bank stands to lose a lot of money. Between the expenses of a foreclosure and the low price that the bank will get when it sells the home at foreclosure, a loss mitigation department never wants to face foreclosure. The loss mitigation department works out to make it a win-win situation for both the parties.

With loss mitigation, as with any problem, certain steps can be followed to help you work through the problem and come out of it with the best possible outcome.

-Admit you have a problem. Be honest with yourself about your financial situation. You can not solve the problem with the help of loss mitigation unless you recognize that there is a problem.

-Information and Communication can bring this stressful situation to a more manageable state. Know what you are getting into, who can help you, and how they can help you. Be open and honest with your lender.

-Get your ducks in a row. Know the facts of your financial situation. How much do you owe? How much do you make? How much can you afford to pay? And be able to support the answer to each of these questions when dealing with a loss mitigation department.

In the past, a loss mitigation department did the majority of its work through loan modifications. However, the short sale has become a popular tool for home buyers recently and loss mitigation departments are willing to work with the short sale as a means of cutting their losses.

The short sale as a means of loss mitigation is proving to be a very effective solution for people that want to avoid foreclosure and losing their home. With a short sale of your home, you as the buyer can cut your losses and get out of a bad mortgage situation with a very small penance to pay on your credit score. The bank, in true loss mitigation department style, also manages to cut its losses and keep costs down by avoiding foreclosure.

To take advantage of short selling your home as a means of loss mitigation, contact a real estate expert that deals with short sales today.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Seeking Loss Mitigation, Consider a Short Sale

Loss mitigation is the process of helping home owners that are delinquent in paying their mortgage and are close to foreclosure. Loss mitigation is used by home owners in Phoenix, Arizona to save their home and of trying to stop the foreclosure before it happens. It is an intervention created to help homeowners avoid foreclosure through third party that helps with loss mitigation. Even though you may think that loss mitigation is a new process, it has been around for many years, and has the potential to save lots of money and headaches.

Foreclosures are destroying the housing market in Phoenix, AZ. That is why loss mitigation is so important. Because foreclosures are higher than ever, loss mitigation specialists are busier than ever. With ARM still going up, we will very likely see the highest foreclosure rates in history. Loss Mitigation is the best method of halting the foreclosure process leading to the sale of your property at auction. The reason for Loss Mitigation is foster an agreement between the homeowner and the bank that put a permanent end to the foreclosure process.

Homeowners often believe that they can refinance with another lender or even with their same lender. However, because there is a good chance that you have already missed a few payments, your credit score will likely not allow you to refinance. Therefore, the only real option available to you is loss mitigation.

With loss mitigation, the lender can help the borrower avoid foreclosure. With each different situation and lender, the rules of loss mitigation are different. One of the more popular choices for loss mitigation is the short sale of your home. Remember that the home owner and the bank BOTH stand to lose thousands of dollars if your situation goes to foreclosure. So, the short sale can be a very effective loss mitigation technique.

With both lenders and borrowers looking for ways to come out of this with as little damage as possible, loss mitigation is on the forefront of both party’s minds. So, taking advantage of the benefits of a short sale can be a win-win situation for both parties. While the bank will still be taking a loss in most situations and the home owner will have a black mark to their credit score for a few years, it is considerably better than the alternatives.

People searching for loss mitigation are growing in numbers. With banks not wanting to take on the responsibility of owning your property, now is the time to consider a short sale as a means of loss mitigation. With foreclosure and bankruptcy being the dark ending for many people, loss mitigation in any manner is ultra important during your time of need. Because no ending to the financial situation you are in will be without pain, it is crucial that the loss mitigation technique you choose is one that eliminates as much of the loss and heartache as possible.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,foreclosure,avoid foreclosure,short sale

Short Selling Not a Tall Order

Short selling involves property that is going to be sold for a price that is less than what it is worth. Often times, when a home owner in Phoenix, AZ can not afford to make their loan payments, they choose to use the method of short selling their home. It is more preferential than the lender taking possession of the property in foreclosure and having to maintain the property until it can be sold.

Short selling a property in Phoenix, Arizona requires that the bank or lender agrees to let the seller or home owner sell the home for less than the value of the current mortgage note. While banks don’t prefer to allow short selling of a home, it has become much more prevalent in recent years with the given state of the economy.

Short selling a property can be a god send for home owners that can not refinance or get their lender to agree to a loan modification. Short selling usually takes about six months or less to complete and allows the home owners to get out of their loan without owing he lender any additional money beyond the selling price of the home.
The one rare exception to this generality is when a bank or lender issues a notice of deficiency. This is where, despite agreeing to short selling a home, the bank still decides to hold the original loan holder liable for the remaining balance that was not paid off during the short selling of their home.

When that deficiency notice comes to you, despite the fact that you have avoided a foreclosure, your credit will still take a hit. So, the notice can keep you from obtaining credit in other situations, like car loans, credit cards, or a future home purchase.

Fortunately for you and all of us, banks have been forgiving a larger and larger majority of these short selling homes. Just to be safe however, you should work to negotiate for a judgment of “Payment in Full” so that the bank will keep from issuing that deficiency in judgment. Work to create a legally binding agreement that will keep the bank from coming back to you for further money.
Short selling does affect credit scores to a certain degree, but not nearly as much as a foreclosure or bankruptcy will. The bankruptcy and foreclosure can stay on your credit report for ten years, while short selling will only appear for a few years. Many people who have used short selling to rid themselves of a bad situation have been able to obtain another mortgage loan in as few as two years after.

Every mortgage lender handles the short selling of a home differently. Just be sure that you understand how your mortgage lender will handle your short selling.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,foreclosure,avoid foreclosure,short sale

Loss Mitigation, Get An Expert on Your Side

Are you facing foreclosure because your mortgage payment is too high? Are you searching for a form of loss mitigation in Phoenix, Arizona that can help you out with this problem?

Dealing with the bank’s loss mitigation department is a very challenging thing to do. With the banks tightening their belts, the process of dealing with loss mitigation has gone from challenging to nearly impossible. Acting quickly in this crucial time of crisis is amazingly important to finding a loss mitigation situation that can work for you.

Loss mitigation can be found with the help of a real estate expert that deals in the short sale of homes. Because of their experience in loss mitigation and helping out people in your situation, they are the best experts to contact when you need to know how to negotiate with your lenders loss mitigation department.

A Short sale specialist in Phoenix, AZ, as a means of loss mitigation, can negotiate with the bank to facilitate a short sale on your behalf. With late fees mounting and a foreclosure notice potentially only weeks away, your loss mitigation needs to be kicked into high gear. The help of a short sale real estate expert can move the loss mitigation process along more smoothly and efficiently on your behalf. Being upside down in your mortgage (upside down refers to the fact that your property’s value is less than the your mortgage loan) is not new to a short sale specialist.

Having dealt with your upside down situation several times before with home owners just like you, a short sale specialist can take you through the steps of dealing with the banks loss mitigation department during the short sale of your home. This is also the reason why loss mitigation departments don’t mind working under the terms that a short sale provides. When they have the opportunity to deal with someone that understands the process from the home owners side, it makes the banks job much easier.

To be perfectly honest, taking a do it yourself approach to this situation should not even be considered. You would perform open heart surgery on yourself, would you? The same notion applies here. Leave the work to the experts.

Take a quick test to see if a short sale specialist can work for you in your loss mitigation needs.

Is your mortgage higher than the value of your home?

Do you want to avoid foreclosure and/or bankruptcy?

Have you missed payments or are you having trouble making payments?

If you answered "YES" to any or all of these questions, it is time for you to get your loss mitigation in high gear by contacting a real estate expert that deals with short sales. There knowledge of the loss mitigation process is keenly essential to your survival in this process.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,foreclosure,avoid foreclosure,short sale

The Short Selling Process

This article is intended for people in Mesa, Arizona who are considering short selling their home or property. The process of short selling might be slightly different from state to state, or lender to lender or realtor to realtor because the short selling process is fairly abstract at times. If you have weighed all of the options available to you and decided that for your own individual purposes that short selling is right for you, we have laid out a multiple step approach that shows what a home owner in a tough situation should do. Bear in mind that this is only a general outline for people that are considering short selling their home. Practice due diligence and consult an expert in short selling in your area.

A Realtor in Mesa, AZ with short selling experience can determine if you, as a home owner, can benefit from the short selling of your home based on lender rules.

Do you currently owe more on your property than the home’s current market value? A comparable market analysis can be used to determine the market value of the home you intend to enter into the short selling process.

Are you, as the seller and primary owner of the residence currently behind in payments? Or, do you anticipate falling behind in payments in the future? Lenders now understand that several factors out of your control can contribute to your need to consider short selling your home because of the potential that you might default on your loan. So, the lenders are also open to short selling the home to ward off future problems.

Is there a financial hardship that you are currently undergoing causing you to consider short selling your home?

Examples of hardship are:

· Unemployment

· Divorce

· Medical emergency / sudden illness

· Bankruptcy

· Death

2) Home owner starts to put together the hardship documentation for the lender to review in the short selling process. This may include, but is not limited to; Income Report, Hardship Letter, Copies of Paystubs, copies of bank statements, copies of previous tax filings

3) Real estate expert list the propert for short selling purposes to receive offers

4) Seller finds an acceptable offer contingent on the lender and seller agreeing on the terms of short selling the home.

5) The offer accepted by the seller is submitted to the lender for approval of short selling the home.

Note: Short selling is dependant on a buyer offering to purchase the property. If the seller gets no offers, there is nothing for the bank to review in the short selling process and the seller will not qualify for short selling the home. Short selling is also dependant on the lender accepting the offer. If the lender chooses to reject the offer, you will not be short selling your home.

6) When or if the lender accepts short selling offer, a letter of acceptance is issued and buyer and seller enter into an escrow period.

7) Escroe and the short selling process are complete when the buyer provides the necessary funds for the transaction.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,loss mitigation,avoid foreclosure,foreclosure

Short selling Your Home

Many home owners are suffering with big mortgage payments in the Phoenix AZ area. Many states like in Tempe, AZ, that have seen housing booms in the last ten years are feeling the pressures of higher mortgage payments. This has led many to search for options to avoid foreclosure. One of those options appears to be better than all of the rest available.

There are some options for mortgage consumers to look at. The benefits to these options range from great to barely noticeable, but at least there are options.

The best option out there is to try short selling your home. Short selling means that you are preparing to sell your house for less than it is worth. With home prices falling, property values have done the same. This has led millions of home owners to pay more for a house that is worth less. If they need to get out of their high payment mortgage, many are considering short selling their homes, taking a financial hit but keeping their credit relatively in tact.

When short selling a home in Tempe, Arizona, the seller may still be held liable for the short comings of the sale price as compared to the mortgage value. However, one of the reasons that the short selling of a home has become so popular is that banks and lenders are, with more and more frequency, beginning to forgive the difference between the sale price of the home and the loan balance.

The other option to consider is to allow your home to be foreclosed upon. When compared to short selling your home, this is a terrible choice. It does have benefits but really not any benefits that are better than short selling your home. With foreclosure, you are ruining your credit for at least seven years. In the worst scenario that involves short selling your home, your credit will be flagged for just a few years. With foreclosure, the bank also loses out. Although statistics are not abundant on the short selling of properties, records indicate that a bank who go to foreclosure sale of your home receive rougly sixty four percent of what they could have received through the short selling of the same home. Obviously, comparative market analysis was used to compile this data. Also, foreclosure can take as long as a year or more to finally complete. Short selling takes much less time.

With the short selling of your home, you will have the opportunity to purchase a new home in a relatively short period of time. Clearly, your financial situation will need to be stable, but perhaps getting into a house that has lower payments will be an option.

Short selling clearly presents the best option for financially troubled home owners. Consider it for your financially troubling situation.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,loss mitigation,avoid foreclosure,foreclosure

Working With Your Lender in Short Selling

Although most people are not very familiar with it, short selling has been around for a long time. In a nutshell, short selling a home means that the home owner is willing to sell the home for less than the value of the home.

There are primarily two reasons why someone would short selling a home. First, to move out of the house in Tempe, AZ quickly. This happens on occasion with people that are facing a divorce or a quick relocation because of a job or other time critical change in their life. Often times, the home owner will try to sell for a profit, but shortly into the process, decide short selling the home is in their best interest.

The second reason isn’t as common. However, because of our current economic situation in Tempe, Arizona and the poor state of the real estate market, homes all over the country are suddenly worth far less than the mortgages that purchased them. Some houses have lost a majority of their value, now worth only a fraction of what they were worth five years ago. Further hurting the home owner, rising payments, unemployment and the like are making it tougher to pay the mortgage.

In this case, short selling the home means that you are getting out of a mortgage that is upside down. It will save you from foreclosure by short selling your home, which can help minimize the damage to your credit. Banks are not a big fan of short selling a home, because even though they understand your predicament, they want the money that was originally promised to them in the note. However, the lenders are more inclined than ever to accept the short selling of a home because they to must adhere to the old adage that something is better than nothing. They understand that short selling gives them a smaller loss than foreclosure sale would potentially give them.

Short selling is a failry good option for home owner. There are a few issues with short selling a home however. Even though foreclosure will have a giant impact on your credit, short selling a home will also have some impact. If a seller can not come to an agreement with the bank to pay the difference between the offer and the loan value, the bank can still report a default on your mortgage to the credit bureau. Many banks in these tough economic times are forgiving the remaining balance of a loan in the short selling process. So, the damage to your credit often lies in the mentality that your lender takes when you are short selling your home.

One last thing to consider, a bank has the right to send your account to an agency that will come after you to collect the balance. However, most banks have done away with this practice, but you should still be aware that this is a possibility in short selling your home. Short selling you home is definitely an option that people facing foreclosure should consider.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,loss mitigation,avoid foreclosure,foreclosure

Short Selling Tax Implications

Our nation is currently experiencing a lot of ups and downs in housing market. Properties that used to be worth a lot of money are now worth just a fraction of that. Because of this, many property owners are in a tough situation where they owe a lot more than their mortgage is worth. Also, selling the property would leave them well short of the needed money to pay off the mortgage. You need to understand the implications of short selling your home.

When you add in the fact that many of these upside down homes in Tempe, AZ are in markets that are already distressed and many of the homes were purchased with an adjustable rate mortgage, things become increasingly difficult. Now, mortgages are seeing interest rate hikes and that tacks on thousands of dollars in monthly mortgage payments.

When you combine the two effects, dropping home values in Tempe, Arizona and increasing mortgage payments you are already in trouble. However, couple those problems with the loss of a job, a major contributor to our country’s financial situation, and you have the makings of a disaster. This current situation also contributes to the short selling phenomenon that a growing number of people are starting to enjoy. With the advent of short selling, home owners are able to avoid foreclosure and come out of a terrible situation in better position than otherwise thought possible.

In most cases, short selling will be a much better solution in the long term than letting your home go into foreclosure. Most people who need to use short selling are already unable to afford their mortgage even if they choose to refinance. You must recall that most of these people were assuming that if they needed to sell their home, they would make a profit on it because real estate always increases in value.

The process of short selling can remove a huge burden from the back’s of many home owners. In the past, short selling meant that you would face a large tax on the sale. Now, depending on your state laws, you may not be hit with the taxes that previously came from short selling.

In many states, some of which tax short selling real estate at nine percent or higher, a seller will need to make a significant tax payment. However, with short selling, remember, you are not in a position to keep your home. So, even with the tax implications, short selling is often times the best scenario.

While the federal laws regarding short selling are fairly clear, it is in your best interest to check the short selling tax laws that are applied at the state level. Being informed as to the tax implications you may face in a short selling situation is important. When you don’t know what you don’t know, you should try to find out what you don’t know.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,short sale,avoid foreclosure,foreclosure

The Value of a Real Estate Agent in a Bank Short Sale Part I

The bank short sale is becoming a larger margin of the real estate market in the Phoenix Arizona area. Many real estate owners and home owners alike do not fully understand the bank short sale. Hence, one of the most challenging aspects of utilizing the bank short sale is to find a real estate agent that knows the ins and outs of the bank short sale. Many real estate agents in Tempe, AZ shy away from the bank short sale. The three factors that often keep real estate agents away from the bank short sale are the additional work involved, the lack of patience with potential buyers in a bank short sale, and the added stress of the situation that often leads to a bank short sale. Therefore, finding an agent in Tempe, Arizona that is willing to take on a bank short sale is vital to the process.

Here is an explanation of the three challenges above to give you a deeper understanding of just how unique real estate agents are that take on a bank short sale. First and foremost, the bank short sale is more challenging because often times the bank short sale takes what is normally a negotiation between two parties and makes it a negotiation between four parties, as two negotiators are often added to the mix. In a bank short sale, the seller and the banks involved do not proceed in the manner that one would in a traditional sale. Generally speaking, the home owner that is using the bank short sale process is upside down financially and their only goal is to get rid of the loan. The home owner doesn’t generally care about getting the best price in a bank short sale. However, sometimes the home owner can work against the bank short sale process by not showing the house at all or showing it in a less than stellar condition.

To complicate the process, the negotiators are not the home owners. The must respect certain policies regarding a bank short sale and are sometimes very difficult to contact and even harder to negotiate with. Negotiators often use their power in the situation to maximize the difficulty of the bank short sale. Also, often times the two negotiators fight amongst themselves because when one gains, the other loses. Also, getting in communications with the negotiators often requires that the home owner has an offer from a potential buyer before they will ever start working on completing a bank short sale. Eventually, there must be an agreement reached on a bank short sale between the seller, the buyer, and both banks. All of these negotiator headaches are even more reason to ensure that you find a real estate agent to handle the bank short sale. Their knowledge and value to the bank short sale process is vital to your sanity if nothing else.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,short sale,avoid foreclosure,foreclosure

Use A Bank Short Sale for a Fresh Start

A recent newspaper report in Queen Creek, AZ proclaims that the bank short sale can save millions of home owners facing a potential foreclosure.

At one point in time, you found your dream home, with all of the right amenities, in the right area, selling at the right price. That dream home, for whatever reason is not worth the same as when you bought it. And, possibly through no fault of your own, you can not afford that home anymore. This situation is regrettable, but it is also the reason why the bank short sale can be a great option for you to regroup.

You might be wondering what a bank short sale is. A bank short sale happens when the lender agrees to a buyers offer on your home which is not enough to pay of the current mortgage in full. However, the bank accepts the bank short sale offer to settle the debt and forgive any difference that exists between the purchase price and the existing mortgage.

The bank short sale process in Queen Creek, Arizona can take several months as it is a complicated process. The bank short sale is usually handled by the loss mitigation department in the bank, which must approve of the sale. Even with a fair offer on the table, the bank may wait for those several months to complete the bank short sale.

Most home owners understand that banks approve a bank short sale so that they don’t have to take on the burden of owning the property and then having to sell the property at foreclosure. Remember, banks are not in the real estate business, they are in the money business.

One of the small obstacles that may stand in the way of a bank short sale is the idea that the bank may not want to jump at the first offer judging that they can reduce their losses in taking another offer.

The bank may consider waiting on a bank short sale to see if the market is corrected (an unlikely occurance for most situations) or if they can get a higher price for the property.

The bank, although they are not in the real estate business, does not want to give away properties either. So, waiting is in their best interest. They are often willing to wait on a bank short sale until they get a more fair price as it is related to the outstanding debt. Regardless of the waiting period, it is still a winning proposition for the home owner who gets out of a loan that they can not afford.

I realize that it is not ideal, sitting there, packing your belongs to move out of the dream home. However, with a bank short sale, you have a greater chance to start over in a new dream home.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: loss mitigation,short sale,avoid foreclosure,foreclosure

Your Lender can Help with Foreclosure Short Sale

A foreclosure short sale program is the one in which your current property with a mortgage at a mortgage company is sold for a rate which is less that what you currently owe to the lender. The foreclosure short sale program is going to be a great option for all those property owners that want to keep their credit report fairly clean to avoid any future problems with it. A foreclosure short sale in Phoenix, Arizona is meant to be used by any home owners who find themselves without any other option besides foreclosure.

With a foreclosure short sale home owners can get relief from their mortgage debt and can then go on to have a fresh start. Furthermore, you would not face any trouble trying to get credit from any other lender, but you would if you went to foreclosure. Foreclosure short sale is a better option than a foreclosure because it does not ruin your credit report, where as a foreclosure can stay in the credit report for at least a minimum of ten years.

The foreclosure short sale process:

· You need to contact your lender in Phoenix, AZ and also get help from a foreclosure short sale expert to let them know that you are interested in the foreclosure short sale of your property

· For a foreclosure short sale, you will need to write a letter to the buyer giving the information on your property and the loan on that property. This letter needs to be accurate in its information so as not to inflate the price of your property

· You lend will want to know what the reason is that you need to use the foreclosure short sale process. So, in most cases, the bank requires a hardship letter from you, that will help in explaining the reasons in your argument for needing to use the foreclosure short sale process. Your lender will also want a lot of information like bank statements, pay stubs and other documents needed to understand your reasoning for foreclosure short sale.

· The lender will then look at the letter with the details about the foreclosure short sale are provided and also the rate which has been proposed for the sale of the property.

· With the help of a broker, your lender will then decide the best rate at which the property can be sold to a buyer.

· To ensure that everything is the way it should be, the lender will take one last look at the agreement that has been made after the sale and the payment.

 

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: foreclosure,short sale,avoid foreclosure,loss mitigation

Readiness To Use Foreclosure Short Sale

Readiness is a most important factor that is used all through the world for everything people purchase, sell, crave, create, and invent. Readiness is also known as the key to making a big decision often times. In order for a person to be ready to take action, they must have solid reasoning to do such an action. With respect to your real estate mortgage in Phoenix, Arizona, readiness to move on can mean a move to foreclosure, foreclosure short sale or any other option. Foreclosure short sale has become a popular choice of both the lenders and the home owners in this day and age. What is a foreclosure short sale and why is it so popular these days? When the home owner agrees to sell a mortgage property and Lender also agrees to the sale of that property at a discounted price, that is considered a foreclosure short sale.

In a foreclosure short sale type of sale, readiness of the seller or homeowner and lender (usually a bank or mortgage company) is keenly important. The foreclosure short sale is a popular choice for both seller and lender for many reasons. foreclosure short sale is a good choice for home owner because they are usually behind in mortgage a payment. So, losing a house through foreclosure is never a good option. Foreclosure short sale allows the person to sell the house for less than they currently owe on it. Homeowners in Phoenix, AZ using foreclosure short sale do not need to worry about damaging their credit ratings. They also have little concern about debts and furthermore they avoid foreclosure or worse yet, bankruptcy.

The lender also finds that a foreclosure short sale is a better choice because of the many benefits they enjoy from it. When the lenders have to foreclose, they have to deal with getting rid of the property.  Lenders are in the business of making money rather than managing properties. So they don’t want to have your property. So, if they have to take possession of your property, they have a big liability that they just don’t want. Lenders do think that a foreclosure short sale is a good choice so that they can get money without all of the headaches of a foreclosure.

Foreclosure short sale requires documentation. Find a real estate expert that has experience in foreclosure short sale. They can provide lenders with documentation and you with advice. Lenders are allowing more foreclosure short sale these days. Foreclosure short sale is a great settlement where your rating is not affected as much as with foreclosure.

Foreclosure short sale can be time consuming. It is key to find a foreclosure short sale expert from a local real estate agent to help you in this process. You will find that the foreclosure short sale process can help you and your credit very much.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: foreclosure,short sale,avoid foreclosure,loss mitigation

Smart Home Buyers Look For Foreclosure Short Sale

Buyers in the housing market in Phoenix, Arizona are seeing many more homes for sale today with special circumstances like REO, foreclosure, foreclosure short sale, and others. All these special circumstances have something to do with a bank, but we will explain each briefly below:

-Bank Owner – the bank has taken ownership of the property and the bank is a seller. Not as good for the buyer as a foreclosure short sale.

-REO – much the same as a bank owned property

-Corporate Owned – Also like a bank owned property, but the business that owns it is set up differently than a bank.

-Foreclosure – This process is also not as favorable as a foreclosure short sale. The lien holder has acquired the property through a court proceeding. Every state does this a bit differently. It can take several months or years to acquire a property that is foreclosed.

--FORECLOSURE SHORT SALE – when a seller in Phoenix, AZ is in trouble financially and your offer as a buyer does not cover the expenses to sell the home and pay off the existing mortgage the current home owner may ask the lender to take a partial payment and accept it as payment in full. With a foreclosure short sale, the bank will often accept it because they do not want to own the home through foreclosure. This gives you, as a buyer some leverage with a foreclosure short sale. It can be the best situation for you to buy with a home that is available through foreclosure short sale.

We believe that as a buyer or as a seller, the foreclosure short sale is a great opportunity for everyone to get what they want. Also, with the sadf, the bank gets some remedy to a bad situation also. With all parties avoiding foreclosure proceedings, the foreclosure short sale is instantly a better deal for everyone. While the home owner doesn’t want to lose the home, selling to you with a foreclosure short sale will help them keep their credit in tact and get them out from a mortgage that they have already proven they can not make payments on. For the bank, accepting a foreclosure short sale keeps them from having to deal with the court process that gives them possession of the property. It also will net them a smaller loss (since they will be taking a loss from foreclosure sale) if they accept a foreclosure short sale. The buyer getting a home through a foreclosure short sale can take advantage of these to other parties willingness to use the foreclosure short sale process and be in a better financial position because they get a home that is usually in very good condition for a very competitive price. They don’t have to wade through all of the court paperwork that can come with a foreclosure.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: foreclosure,short sale,avoid foreclosure,loss mitigation

What is a Foreclosure Short Sale?

In the world of real estate, a foreclosure short sale is a process where you sell your home for a price that is lower than what you owe on your mortgage. Why would someone do that? This is certainly a valid question. When you decide to use a foreclosure short sale in Phoenix, Arizona, the difference between what you owe on your mortgage and the sale price you get in your foreclosure short sale is generally forgiven by your bank. The foreclosure short sale is an innovative way to avoid foreclosure when you are not in a position to make mortgage payments anymore.

A foreclosure short sale in Phoenix, AZ is normally allowed when certain economic conditions are met. The foreclosure short sale the opportunity for both the homeowner and the bank to ease the losses they would normally have with a foreclosure. Remember that a mortgage company will only approve of the foreclosure short sale if they will lose less money doing it than they would with a foreclosure. With the abundance for people facing foreclosure because of a poor economy and bad lending practice, foreclosure short sale is becoming a popular move. The benefits of a foreclosure short sale are plenty. Foreclosure short sale can reduce the negative consequence that a foreclosure has on your credit score. It is also quicker, less expensive and less complicated than a foreclosure.

If you are having trouble making your loan payments, you should consider foreclosure short sale on your home. It is much better than allowing your property to go into foreclosure. Also, it has the potential to help improve the poor economy. If your property is worth less than you currently owe on it, take consider whether a foreclosure short sale can get you into a better situation. Talk to your lender about your options. They will appreciate you taking a proactive approach are more likely deal with you. Consider this. It takes as long as five years after a foreclosure to quality for a loan and at least seven years after bankruptcy. In just two years after a foreclosure short sale, you can qualify for a loan.

Lenders are approving foreclosure short sale now more than ever. Here are the basic steps to foreclosure short sale:

1. Contact your lender to inform them of your problems and ask if they would consider allowing a foreclosure short sale.

2. Find a real estate agent with experience handling foreclosure short sale.

3. Find out the value of your home.

4. Put your home up for sale.

5. Find a reliable buyer.

7. Give the deal to your lender for approval.

Keep in mind that the foreclosure short sale is in the best interest of both you and the bank. Good luck with your new option.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,avoid foreclosure,loss mitigation,mortgage refinance,refinance

Manage Your Credit Score with Foreclosure Short Sale

Finding a way to avoid foreclosure in Phoenix, Arizona should be the focus of any person that finds themselves behind in their mortgage. One of the best ways that people have found to avoid foreclosure is using a foreclosure short sale to keep the bank from sending that dreaded letter. If you are one of the many people that has not heard of a foreclosure short sale, it is a complicated process. So, we will explain the foreclosure short sale to you as simply as we can. A foreclosure short sale is when a mortgage lender decides to accept an offer from a buyer that is less than the needed amount for what is owed on the existing mortgage property.

In some cases, a foreclosure short sale in Phoenix, AZ can take as long as six months to close on. There are several reasons for the foreclosure short sale taking so long. Don’t worry about how long it takes to close a foreclosure short sale. However, you should consider why it is important to use a foreclosure short sale and avoid foreclosure completely. The biggest reason to decide on a foreclosure short sale is to keep your credit in relatively unscathed. If you plan to own a home again in the future, it is important to avoid foreclosure through foreclosure short sale.

If you now understand that the foreclosure short sale is right for you, get help. You will be better served in a foreclosure short sale to have a knowledgeable real estate agent with experience in the foreclosure short sale process. Sit down and speak with the real estate agent to gage just how experienced they are with negotiating a foreclosure short sale with lenders and banks. An agent with experience in foreclosure short sale will understand that it takes a lot of patience to negotiate with a bank. Many real estate agents do not have people with experience in foreclosure short sale and will struggle through the process. They could probably still handle a foreclosure short sale, but you will be better served to find someone with experience.

Many times, the best choice you can make when executing a foreclosure short sale is to find an investment group who will be willing to offer you an all cash payment for your property. You will want to avoid contingencies when you execute a foreclosure short sale and try to find a buyer that is willing to close on the property as soon as the mortgage company agrees the offer from your investors. Once again, it is mildly important to find an investor who has some experience in dealing with a foreclosure short sale and is an expert in dealing with bank negotiations.

The most important thing to remember is that a foreclosure short sale will help you keep your credit in a manageable condition. Because you are already in a tough spot, a foreclosure short sale will be the best solution for you.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,avoid foreclosure,loss mitigation,mortgage refinance,refinance

Foreclosure Short Sale a Win-Win Situation

About five years to one decade ago, score of people in Phoenix, Arizona decided that it was time for them to buy a home. These people were under the impression that their new home purchase would quickly appreciate in value. Much to their surprise, the exact opposite has happened with the crash of the housing market. The housing market has depreciated enormously. As a result, many of those same home owners are staring at something commonly referred to as an upside-down mortgage. An upside down mortgage means that the home owner owes a lot more money on their existing mortgage loan than the property is actually worth. Many people think that it really isn’t a good idea to continue to pay money on a mortgage such as this. So, they are faced with a couple of different options, bankruptcy or foreclosure?

There is another little known option in Phoenix, AZ that has proved to be successful for many people, the foreclosure short sale. Reallly, the term explains it well. With an foreclosure short sale, the owner of the house or property and the bank or mortgage lender reach an agreement on the repayment status of the home loan. Also, in a foreclosure short sale, the property owner refuses to continue paying the loan payments on a house that, in today's current real estate market, has now lost enough value to be worth only a fraction of that loan value. The property owner knows that he or she can sell the home on a down market, but with a foreclosure short sale he or she would be getting a smaller offer than what they paid for the house and would basically have to agree to take a loss on the foreclosure short sale.

The lending company, usually a bank, also realizes the difficult position that they are in. However, they will often give in to the fact that the current market conditions will make reselling a house in foreclosure a very difficult thing to do. So, with a foreclosure short sale, the bank will still have to take a loss, but the loss will not be nearly as much as if they have to foreclose on the home and sell it at auction. There is also a substantial savings with a foreclosure short sale because, with the alternative, foreclosure has many fees and legal hurdles to deal with.

So, the foreclosure short sale is a good solution for both parties. The bank, in a foreclosure short sale, has the ability to cut costs and reduce the size of the loss that they take. The home owner, using a foreclosure short sale, gets out of a upside mortgage as the bank accepts the lower offer as a payment in full on the mortgage and takes the loss. Foreclosure short sale is a win-win situation.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,avoid foreclosure,loss mitigation,mortgage refinance,refinance

Foreclosure Prevention Part III; The Best Way to Keep Your Home

To keep your home from foreclosure as long as possible, we are a proponent of a fairly unknown foreclosure prevention method to the uninformed public in Chandler, Arizona. This method of foreclosure prevention has been brought to the forefront with the abundance of people seeking foreclosure prevention in an economy that just keeps sinking. With home owners losing their jobs left and right of you and property values shrinking today and shrinking tomorrow, one foreclosure prevention tactic has been very successful for the American people.

Allow us to introduce to you the short sale as a method of foreclosure prevention. While the details are better explained by a real estate expert in Chandler, AZ that is familiar with the short sale process, we will do our best to give you some insight as to the nuances of the short sale as a foreclosure prevention method.

The short sale as a method of foreclosure prevention takes in to account that you can not pay your mortgage any longer or you do not want to pay your mortgage as it is worth far more than the value of your home. Foreclosure prevention with the use of a short sale is open to virtually anyone and can apply to businesses, residencies, rental properties, investment properties and even vacant land. This foreclosure prevention method is called a short sale because you are offering your house on the market even though the offer you receive will, more than likely, be short of covering the payoff of your existing mortgage.

So how do you win with a short sale as a method of foreclosure prevention? Because the banks only want to recoup as much money as they can, the short sale leverages the banks against their bargaining chip, the foreclosure. That is why we consider it foreclosure prevention to use a short sale.

Basically (bear in mind that we are speaking in general terms, all of this should be verified with a real estate expert), you will put your home on the market as a tool of foreclosure prevention. When you receive an offer, which will more than likely be less than the value of the loan, you tell the bank that they should accept the offer in lieu of foreclosure on your home because it is far more than they will get if they have to sell the home at foreclosure. For this fact, the bank will allow this method of foreclosure prevention to minimize their losses. In many instances, they will be willing to forgive the remaining balance of the mortgage that the offer price didn’t cover. The bank wins because they do not incur the fees and legal proceedings that go along with a foreclosure and you get out from your mortgage.

You can wait around for the newest foreclosure prevention act from congress and hope that it will apply to you or use the newest tool in foreclosure prevention, the short sale. Given how Congress handled the last foreclosure prevention act, which would you prefer?

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,loss mitigation,avoid foreclosure

Foreclosure Prevention, Where to Turn in this Difficult Time

It is tough to not notice all the foreclosure prevention advertisements popping up in Phoenix, Arizona these days. Foreclosure in the United States are at record highs, so too, in turn, are people seeking foreclosure prevention help. Thousands of people are searching for foreclosure prevention to stay in their homes. A look at recent history shows that the foreclosure epidemic was inevitable. The easy credit and financing of the last decade led millions to sign on to home loans that were headed for problems from the start. Many of those millions are now searching for foreclosure prevention help. Many of the loans available came with a convenient adjustable rate. Those that took advantage now find themselves among the largest group that is searching for foreclosure prevention help. In only a few short years, the interest increased on these loans and the payments went up. This left many home owners without the funds to pay for their mortgage and led them to seek foreclosure prevention.

Although many people in Phoenix, AZ have already lost their homes, there is good news. Foreclosure prevention is possible. However, you need to get started right away. The most important thing in foreclosure prevention is to respond to the correspondence you get from your mortgage lender when you find yourself behind on your payments. Far to many people ignore these requests from lenders and that is no way to find foreclosure prevention. The longer you ignore the lender without responding the further you will get from foreclosure prevention.

When speaking with your lender, give them some insight into your financial situation let them know that you intend to make the payments as soon as possible. Many lenders will help you with foreclosure prevention by working out payment arrangements with you in arrears to help you out a bit.

If an arrangement with your lender doesn’t work for you as a means of foreclosure prevention, perhaps refinancing is an option. Refinancing as a means of foreclosure prevention can lower your monthly payments to a more comfortable number. However, if you have damaged credit from missing payments, many lenders will not allow this.

If you find that most of the foreclosure prevention options won’t work for you, consider a short sale. A real estate expert can give you insight as to how a short sale works as a method of foreclosure prevention. As is noted in the term, you will have to sell your home. However, using this process as a means of foreclosure prevention can and is probably the best option for you. There are real estate agents in your area that work specifically with short sales. Take advantage of their knowledge of foreclosure prevention and the short sale process to get yourself on the right track for your future.

The short sale will make the best of a bad situation. If you are one of millions looking for foreclosure prevention help, contact a real estate agent today regarding short sale of your property.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,loss mitigation,avoid foreclosure

Foreclosure Short Sale is A Way Out

Ten percent of all home owners in Phoenix, Arizona are currently facing foreclosure in the United Sates. Within the other ninety percent there exists a large group that will soon find themselves in the sale predicament. With unemployment on the rise and businesses failing on every street corner, many people can not afford to pay their mortgage payments on a monthly basis. The number of people missing mortgage payments on a monthly basis is astounding. So, how do you go about saving your home from impending foreclosure? There are some clever ways to go about doing this.

Here are a few ways to consider…· Do not wait for the lender to send you a foreclosure letter or even a notice of default. Communicate to your lender with a hardship letter as soon as you see that you won’t be able to make payments.

· Timing is critical in the process to save your house from foreclosure in Phoenix, AZ. A delay in your decision making process can cost you time, money, and most importantly, your home.

Here are some options available to you…

· Contact the HUD to visit with a counselors. They can help you sort out your finances. Also, they have a better means of proving your hardship case to your lender. The service is also free to use.

- Loan modification—get the bank to change the terms on your loan

- Loan mitigation – negotiate with the bank on paying overdue payments

- Refinance – totally redo your mortgage loan (lots of fees with this and tough to do if you missed payments already)

- - Getting a personal loan to pay the mortgage amount – this just gets you deeper in debt

AND FINALLY, THE REAL SOLUTION….FORECLOSURE SHORT SALE

A foreclosure short sale is the best option to consider. The foreclosure short sale is the only option that will help you rid yourself of a burdening mortgage and may get some money into your pocket too (if you are lucky). The foreclosure short sale is not an option that banks will agree to without hassle. With a foreclosure short sale it can be tough to find a buyer quickly. Also, the offer amount that you generally get from a foreclosure short sale is a great benefit to the borrower (like a discount on your mortgage). The foreclosure short sale process appears to be a bad choice for your lender, but when you find a real estate expert that is experienced in the foreclosure short sale, he can explain why it is not a bad deal for you or for them. You should consider a foreclosure short sale if you are in the following situations among others…

- You don’t mind moving out of the home to live someplace else.

- You can’t afford the home in the future and it will be a long time before its value is as much as the mortgage loan is now.

- You want to avoid foreclosure and do as little damage to your credit as possible.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,foreclosure,loss mitigation,avoid foreclosure

Foreclosure Prevention Part II: More Qualifiers

Part two of the amendments is as follows…

Under the American Housing Rescue and Foreclosure Prevention Act each loan considered for foreclosure prevention will have to be taken on by an FHA lender reviewed on an individual basis. So the banks in Chandler, Arizona still hold the power as they can help or hurt you in your search for foreclosure prevention by reviewing your credit scores, pay stubs, tax returns and other relevant data. This is really no different than applying for a new mortgage! You will be required to meet much of the same criteria to qualify for the foreclosure prevention act.

Does that make sense? While we are not mortgage lenders, it would appear that foreclosure prevention is not in your future if you do not have a near perfect credit score. Isn’t this really just a cruel joke, rather than an act of congress to help thousands of Americans? It stands to reason that just one percent of the people seeking foreclosure prevention can qualify for this program.

Another interesting note from this program…

American Housing Rescue and Foreclosure Prevention Act GSE Reform (H.R. 1427) borrowers are responsible for paying a lifetime insurance premium to the FHA, which your government decided will be a robust one and a half percent of the annual principal. Users of this foreclosure prevention act must also agree that if they sell their home for a profit in the future, they will share that profit with the FHA. In order to facilitate this, home owners will pay a three percent “exit fee” of the mortgage when they sell or refinance their property if they chose to use the foreclosure prevention act.

How useful are these amendments to the people in Chandler, AZ looking for foreclosure prevention help? From the outside looking in, it would appear that the foreclosure prevention act is aimed at helping the FHA be more stable in the future, rather than helping the home owners that are looking for foreclosure prevention and trying to save their families homes.

To sum it all up, with the deep recession that this country is in right now and considering the gross negligence of our Government with their ridiculous programs like the American Housing Rescue and Foreclosure Prevention Act, they have failed the American people. There is really no offer of real foreclosure prevention help to the people who need it most. There is very little likelihood that this foreclosure prevention program will ever get to the people that can actually benefit from using it.

Perhaps, with the new administration, the American public can find a foreclosure prevention program that will really work FOR them. However, between now and the advent of any government program that can really help us, you are very much standing alone in your search for a foreclosure prevention method that will truly work for you.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,loss mitigation,foreclosure,avoid foreclosure

Foreclosure Prevention Part I: Congress Tries to Help

A current bill making its way through the halls of Congress, the American Housing Rescue And Foreclosure Prevention Act was passed a few years ago by the Senate and House of this nation and signed into law by President George Bush. Many of the people in Chandler, AZ who are seeking information on foreclosure prevention have been asking for an explanation of this act of congress in terms that they can understand. People, quite simply, want a general idea if this foreclosure prevention is something that they can take advantage of. Here is what we have found out about the foreclosure prevention act.

The House of Representatives worked diligently several months ago to passed what they referred to as “the most comprehensive response to the American mortgage crisis” that the country has ever seen. At least that is their claim. The act is called The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) and was created to help out with the current crisis facing many middle class Americans that own homes while at the same time providing them with the needed help with foreclosure prevention that they have been asking for.

The act includes a variety of bills including actions to bring up to date the FHA and reform the GSEs, which could help with crucial liquidity to our real estate markets immediately while also supporting foreclosure prevention with better regulation and oversight.

The American Housing Rescue and Foreclosure Prevention Act was created to aid property owners in Chandler, Arizona facing who are foreclosure keep their properties. It is supposed to help a growing number of families with foreclosure prevention in the future, and spur the economy in places that have been hit hardest by foreclosures.

However, keep this in mind, after the American Housing Rescue and Foreclosure Prevention Act was signed into law, dozens of amendments were immediately made to it until it was so exclusive with its provisions that it only helped roughly one percent of the home owners that were looking for foreclosure prevention.

Some of those amendments include…

Amendment 1: FHA American Housing Rescue and Foreclosure Prevention Act (H.R. 5830). Only primary residences are eligible for foreclosure prevention. NO speculators or investment properties qualify. second or third Mortgages loan in the same property will not be refinanced and will not have any means of foreclosure prevention. So, if you have a second mortgage, which many home owners do, foreclosure prevention through this act will not be available.

The raw facts show that almost seventy five percent of current homeowners seeking foreclosure prevention today have a second or third mortgage. That is an enormous group of people that can not get any foreclosure prevention help.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

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Arizona Government Helps Foreclosure Prevention

More than a thousand home owners in Phoenix, Arizona area were able to use foreclosure prevention techniques to keep their homes from being foreclosed on. Because of a variety of foreclosure prevention projects, millions of Americans across the country have been able to avoid foreclosure. Contrary to popular belief, the banks and lenders that hold these mortgages want to help you with foreclosure prevention just as much as you want to help yourself.

The government in Phoenix, AZ understands that foreclosure prevention programs are important to the families of this great state. And they are doing everything that they can to help with foreclosure prevention for all of those home owners that need it. There have been exhaustive efforts with respect to foreclosure prevention to help people stay in their homes.

The foreclosure prevention program that the federal government unrolled was enacted by President Obama. He also had the intentions of helping foreclosure prevention of homes that were purchased with sub prime mortgages. The foreclosure prevention program is set up and can be used until at least 2012.

Under the foreclosure prevention program, many people that face foreclosure or the potential of foreclosure can have the opportunity to use something like a loan modification. Loan modification is a great method of foreclosure prevention as it gets the home owner into a situation that they can feel comfortable with. However, because the government is involved, they are in control of who can use the program. That is a good thing for people trying to find a method of foreclosure prevention. Without the government involved, a loan modification can only happen if the lender agrees to it, and they only care about there money.

The foreclosure prevention program is useful for many, but its criteria can make it difficult for some to qualify. Also, if you are one of those individuals that can’t make the payments at all, modifying the loan may not help at all. Therefore, some of you need to consider another foreclosure prevention option.

Consider for your foreclosure prevention prevention method the short sale of your home. The short sale offers the home owner the opportunity to get out from under their mortgage by selling the home.

Because of current state of the housing market, with home values plummeting, people don’t think that they can sell their homes for enough money to pay off the mortgage. While this is true, the short sale remedies that, which is why it is a very nice method of foreclosure prevention.

With a short sale, you are able to sell your home for less than the value of the mortgage and the bank accepts that money along with other terms that include either forgiving the remainder of the loan or working out a payment schedule for the remainder of the loan. Either way, it is a great way of foreclosure prevention.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

Technorati Tags: short sale,loss mitigation,foreclosure,avoid foreclosure