What are the disadvantages of a foreclosure?
Not only does a home owner lose his or her home with a foreclosure, but the home owner is responsible for the remainder of the debt owed on the loan after auction or sale to a third party.  In some cases, this can be a few hundred thousand dollars still owed, forcing some home owners to file for bankruptcy as well.  Furthermore, the home owner’s credit rating will be lowered (250 points on average)  and will not recuperate for about 7-10 years.

What are the advantages of a foreclosure?
Unfortunately, relative to other options available for distressed home owners, there are not many advantages to allowing your home to foreclose. Considering the impact on your credit, the loss of property, and the potential debt still owed, a much more appealing option will be to find an agent to perform a short sale.  A short sale does not affect your credit as much, or for as long as a foreclosure.  Furthermore, any remaining debt owed after sale of the house is cleared and the home owner is no longer liable.  In fact, at Wealth Realty, we have been able to get home owners up to $35,000 back from the bank as well.

How can I learn more?
For more information on short sales or to find out if you qualify, feel free to contact Wealth Realty at (626) 600-2307 or email at rima@wealthrealty.org.  The information and services we provide at Wealth Realty do not cost you a penny, but the safety and reliability in working with our agents is priceless.  At Wealth Realty, your comfort is our primary concern.

What are the benefits of a loan modification?
For many reasons, loan modifications are beneficial.  Unlike other options for home owners struggling to make their payments, a loan modification alone does not affect your credit score.  Furthermore, typically a change occurs in which a modification in the interest rate, loan term, loan amount, or monthly payment is achieved which may be beneficial in making a home owner’s mortgage payment more affordable.

What are the drawbacks of a loan modification?
Although many times neglected, there are some negatives to a loan modification.  The criteria for a loan modification have become more and more stringent over the years, resulting in less and less modifications being approved.  Furthemore, a loan modification can be a very long, time-consuming process that may take months to years to complete.

How can I ensure the loan modification is properly handled?
Some tips in submitting a loan modification.  The loan modification process is extensive.  Not only is it crucial to have the right documents submitted in a timely, prompt manner, but it is also essential that all information submitted is current each time.  Because of this, working with a dependable, experienced loan officer may be a more beneficial option for home owners.  Unlike most attorneys working with loan modifications, a loan officer will not charge any upfront fees.  Furthermore, submitting for an appraisal may also help.  Although not required, an appraisal may help demonstrate to the lender the value of your home and magnitude of decline in value of your home since the previous loan terms.  This may help in the approval process.  Finally, start early.  If you are considering a loan modification, the earlier you start the better.  Do not wait until your home is being foreclosed to research your options.  There are numerous options for home owners and many ways to save your credit or potentially your home.

How can I learn more about loan modifications?
If you are interested in learning more about your options as a home owner, or to see if you can qualify for a loan modification, feel free to contact Wealth Realty at (626) 600-2307 or email at rima@wealthrealty.org.  The information and services we provide at Wealth Realty do not cost you a penny, but the safety and reliability in working with our agents is priceless.  At Wealth Realty, your comfort is our primary concern.

How does a short sale work?
The proceeds of a short sale are collected by the lender to repay the debt from home owner’s loan amount.  As of January 1, 2011, the California Legislature passed Senate Bill 931, with the addition of Section 580(e) to the California Code of Civil Procedure.  This addition was beneficial to home owners of one to four unit residential properties with a first deed of trust, as long as no fraud or waste has been committed by the owner.  Under this addition, qualified individuals that are approved to short sale may have any additional debt from the remaining balance of a short sale loan forgiven.  Home owners should still be aware of the inevitable impact on one’s credit with performing any such agreement.  This impact may be prominent for anywhere from two to five years.  However, the addition of the section that forgives additional balance liability and the shorter, less prominent impact on one’s credit with a short sale are two reasons why a short sale may be beneficial.  

What are some complications of a short sale?
Home owners beware, however.  Despite the benefits of a short sale, recent statistics show that 43% of short sale attempts do not close.  The process of a short sale is extremely complex, requires persistent follow-up, and immense attention to detail.  Because of this, home owners should make sure they are working with a trusted source that is diligent and well-educated on the constantly evolving area.  With an investment as valuable as one’s home at stake, it is advised that home owners do their research and make sure they are working with a competent, well-trained, and specialized agent.

How can I learn more?

For more information on short sales or to find out if you qualify, feel free to contact me.

 Wealth Realty  (626) 600-2307 or email at rima@wealthrealty.org.

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The information and services we provide at Wealth Realty do not cost you a penny, but the safety and reliability in working with our agents is priceless.  At Wealth Realty, your comfort and long term wealth is our primary concern.