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Short Sale Resources for Homeowners

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While each situation is unique, thousands of people are suffering and experiencing the same kind of difficulties you are. The good news is that you'll discover that you do have options.

 The Short Sale Timeline

1 Day Late: The borrower's credit can be affected.
After a few days: The lender may begin contacting borrower & start the collections process.
After 3 months: The lender may begin the foreclosure process by sending a Letter of Intent to Foreclose. This warning to borrower to take immediate action or the Lender can proceed to foreclosure by filing a Notice of Default.
30 days later: The Notice of Default can be filed and recorded.
3 months later: If no action is taken the Lender can file a Notice of Sale.
3 weeks later: The property can be sold on the steps of the courthouse and the borrower will lose their home.

If no action is taken by the borrower they will most likely lose their home and the borrower's credit can be seriously damaged by foreclosure!

A Short Sale can be accomplished any time prior to a foreclosure sale.

 Loss Mitigation

As you research options, you may frequently come across the term, Loss Mitigation. Loss Mitigation is an effort by the lender to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan; a process to avoid foreclosure. It was established by the federal government and mortgage industry to stop foreclosures, but each lender has their own policy.

 Alternatives to Foreclosure

In determing the best option for a distressed homeowner it is important to understand the options available. Remember, time is of the essence.

  1. Foreclosure. If not action is taken the property will most likely be taken by the lender through foreclosure action. This option would negatively impact any future loan applications and credit ratings.
  2. Refinance. This option permits a property owner to replace their original mortgage with a new one. This option requires that the property owner qualify for a new loan and may also include a higher interest rate and possibly a prepayment penalty.
  3. Reinstatement. This option requires a property owner to make a payment of the entire defaulted amount as well as interest and late fees. This option may also require payment of attorney's fees and taxes.
  4. Loan Modification. A permanent change in one or more of the terms of a mortgagor's loan which results in a payment the property owner can afford. The mortgage company generally requires the property owner to demonstrate a reason (or hardship) for this adjustment, and the owners' ability to qualify, and likelihood to stay consistent with the payments.
  5. Forbearance. In this option the existing mortgage company permits the property owner leeway in bringing the defaulted loan current. It may take the form of extra time allowed to pay overdue payments in return for the promise to make regular payment in the future.
  6. Partial claim. This option allows the property owner to obtain a second loan to cover back payments, costs and fees.
  7. Deed in lieu of foreclosure. In this option the property owner essentially gives the property back to the bank instead of proceeding with a foreclosure. This option would negatively impact any future loan applications and credit ratings.
  8. Bankruptcy. This option can liquidate debt and postpone a foreclosure sale. Lenders may impose requirements as to property condition and tax status.
  9. Sale of the property. If a property has equity the property owner may sell the subject property without lender approval through a conventional sale. If the amount owed on the property is more than the property's value a Short Sale can be negotiated with your lender.

This information provided is for informational purposes only. IFR recommends each individual consult with a knowledgeable accountant or attorney as to how any of the above choices may impact them

 Beware of Scams in Avoiding Foreclosure

If you suspect a scam, you should report it immediately to local authorities.

• Phony counseling or phantom help
• Bait & Switch scams (People think they are not)
• Rent to Buy schemes
• Bankruptcy to avoid foreclosure

• Guarantees to stop foreclosure process regardless of your circumstances
• Collects a fee before providing services
• Encourages you to lease your home so you can buy it back over time
• Tells you to make your mortgage payments to them directly, instead of the lender
• Advises you not to make your mortgage payments
• Recommends you to transfer your property deed or title to them
• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• Offers to fill out the paperwork for you
• Pressures you to sign paperwork you haven't had a chance to read or that you don't understand.

 What To Do Now...

If you are starting to experience financial difficulties, BE PROACTIVE! Call us NOW before you become late. If you are already late NOW IS THE TIME TO ACT!--even if you've received a Notice of Default from your lender.

We understand that you are in a difficult circumstance and have structured our fee accordingly. We require NO UPFRONT FEES and get paid once the sale closes. We can help you regain peace of mind that will allow you to move on with your life.

Get Started by filling out our Pre-qualification Form for Short Sale. Upon receiving your submitted form, an IFR professional will contact you for a confidential consultation to determine if a Short Sale will work for you. IFR provides the following services to complete the Short Sale of your home:

Proper Preparation of your Short Sale file..
Guidance in writing a strong Short Sale package.
Negotiate with your lender(s) on your behalf.
Provide consistent follow-up with your lender.
Request lender(s) report in such a manner to have minimal impact on your credit score.
Request lender(s) to forgive outstanding balances on loans as part of the Short Sale agreement.
Provide documentation necessary to stop collection calls.
Help you avoid scams.

Sean H. from Huntington Beach, California gives his testimonial of his success working with Innovative Financial Resources.

"Thank you [IFR], for saving me from foreclosure! Now I can start rebuilding my life. When I started working with you in 2008 my future was very bleak. I was mentally exhausted from the non-stop collection calls. You took charge of the situation and worked diligently through 3 buyers who walked away at the last minute. After 8 months the Short Sale finally closed and the bank didn't foreclose on me. I was even able to settle with the second lender without them going after me. Now I can look forward to the future. Thank you so much!"

This testimonial does not constitute a guarantee, warranty or prediction regarding the outcome of your legal matter.

Contact us at (866) 990-1437

Disclaimer: The information provided on this webpage is general information and should not be confused with legal advice. If you require legal advice for your individual circumstances, please consult with your attorney. All information provided is deemed reliable, but not guaranteed. YOU MUST SEEK ADVICE FROM A KNOWLEDGEABLE ATTORNEY OR EXPERIENCED TAX SPECIALIST REGARDING YOUR LEGAL RIGHTS AND TAX IMPLICATIONS OF A SHORT SALE.

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