Klinger Real Estate Group
The Klinger Real Estate Group is Dedicated to Assisting as many distressed homeowners as possible avoid Foreclosure in Las Vegas and Henderson Nevada. We are very successful Henderson Short Sale Agents and have successful completed short sale with the following banks: ASC, AHSMI, Bank of America Short Sales, Chase, Citi Mortgage Short Sales,Countrywide, EMC, First Franklin Las Vegas Short Sales , GMAC, HomeEq Short Sales, HSBC, Indymac,Nationwide, Saxon, SLS, US Bank Short Sales, WaMU, Wachovia, and Wells Fargo Short Sales through out the entire Boulder City, Henderson, Las Vegas, and North Las Vegas residential real estate market.Contact Anna Klinger, Property Manager at: KlingerAnna@gmail.com for any property management inquiries or questions
Do you think your loan modification is failing?
You could be wasting your time and effort while attempting that loan modification. Time is closing in on that Nevada foreclosure timeline. Unless all the requirements to qualify for Loan Modification are met, your loan modification application can be rejected.
Seven out of ten loan modifications have or will fail! Loan modifications fail for several reasons: loss of income, previous late mortgage payments, debt to income ratios being too high to qualify for the new loan terms, and others. Often a homeowner in distress will call just as his or her loan modification application is denied.
Many times there is just not enough time to list, market and obtain an offer prior to the foreclosure sale date. The foreclosure process does not pause during a loan modification attempt. With enough time we can list, market, and obtain offers, (usually in line with market value), and the lender may postpone your trustee sale date.
CONTACT US. TODAY FOR A NO OBLIGATION CONSULTATION.
Understanding The Short Sale
Borrowers facing foreclosure may ask the lender to accept a discounted payoff on their loan, a “short sale” or “short payoff”. This allows borrowers to avoid foreclosure actions, and often offer lenders an expedited and less costly resolution of the situation.
Most lenders have specific criteria that relate to borrowers’ ability to repay the debt, in order to consider short sales. Some lenders will consider a short payoff only if the borrower can produce evidence of hardship. The lender determines if the seller is eligible to sell the home at less than the outstanding debt due to hardship. Owing more than the home or property is worth is not necessarily a hardship. Hardships include divorces, unexpected hospitalizations and medical expenses, job losses, deaths of family members or similar catastrophic situations. Additionally, a budget must show that the seller’s expenses exceed their income/assets, they are behind on their payments, and there is no way to repay the lender.
A property that is distressed or requires extensive repairs may also qualify. If the lender were to foreclose on this type of property, it would have to pay for all the repairs necessary to sell the property. A short sale may represent a more cost-effective way to pay off the loan. Steps of the Short Sale from the buyers perspective.
- Property listed and marketed for sale
- A purchase agreement received and agreed to by both buyer & seller, subject to short sale approval from lender(s) holding the mortgage notes.
- Preliminary title report ordered, estimated HUD-1 calculated and drawn up
- The completed short sale package reviewed and sent to the lender(s)
- The lender receives the package and reviews for completeness. Incomplete packages are usually disregarded.
- The lender then orders the BPO &/or Appraisal, usually within 30 to 60 days
- The lender reviews and compares the values of the BPO/Appraisals to the purchase offer amount and net proceeds to the lender.
- If all is in line, the lender forwards the package to the underlining investor for final approval, which could take 30-90 days for final approval
Depending on the institution, there may be multiple stages and negotiators handling the file. If there are no hangups there could be decisions of acceptance, counter offers, or rejections, hopefully within 60 to 120 days.
Short sales are time consuming and difficult. See Why Short Sales Can Fail page. Finding the right buyer for a short sale is a difficult task by itself. The buyer must be in the position to wait, and have the patience to wait month on end without any substantial updates. Then the sale could be denied by the lender, and in the mean time the buyer may have missed other purchasing opportunities. Buyers will also need to have their financing in place and be able to close the sale, usually within 30 days of receiving the short sale approval. Short sale approvals are usually valid for 30 days, extensions could result in additional fees and expenses which could cancel out the short sale. Buyers and sellers may need to be prepared for additional out of pocket expenses to settle at close.
CONTACT US. TODAY FOR A NO OBLIGATION CONSULTATION.
Don’t Just Walk Away
Homeowners who are current with their mortgage payments may be able to take advantage of today’s mortgage rates and retain ownership of their home via refinancing to a 30 or even 15 year fixed rate loan through the Home Affordable Refinancing Act.
Some basic requirements: Owner occupied, 1-4 unit home, Owned or backed by Freddie Mac or Fannie Mae, Loan to value (LTV) ratios above 80% but not more than 125%, Must be current on existing mortgages, must have enough income to support the new mortgage payments.
HERE ARE SOME OPTIONS:
- Refinance could be an option
- Lender workout solution
- Sell and bring in cash to closing
- Short Sale
- Deed in Lieu of foreclosure
- Do nothing or walk away
Lenders will often work with with a distressed homeowner to assist them with keeping their home. Workable solution may consist of reducing or rolling back interest rates, forgiving back payments, adding them to the loan amount, or possibly recasting the entire loan and wrapping all fees into a fixed rate mortgage.
Loan modification could be a suitable solution. Lenders may entertain a loan modification if borrower is able to meet the requirements and guidelines. HAMP Home Affordable Modification Program may be able to assist struggling homeowners to stay in their homes. HAMP has a strict guidelines and requirements to be eligible: Owner occupied, 1-4 unit dwelling, unpaid principal balance that is equal to or less than $729,750 for single unit properties. Higher limits available for multiple unit dwellings. Loan originated on or before Jan 1st 2009, payments exceed 31% of borrower’s gross monthly income, Experienced a change in income of other financial hardship, at risk of imminent default or in default.
A short sale may be the best option for most homeowners that find themselves in distress and facing foreclosure. The short sale provides a window of opportunity to sell the property in which may partially satisfy the amount owed to the lender in order to release the lien against the property. The short sale is much more preferable on a borrowers credit score than a foreclosure.
The Home Affordable Foreclosure Alternatives Program (HAFA) brought into effect November 2009 by the Obama Administration is designed to assist borrowers who meet the requirements and are eligible for the program, and are unable to keep their homes. Under this program borrowers an mortgage servicers are provided with incentives to help facilitate short sales or deed in lieu of foreclosure if the short sale is not successful.
A deed in lieu of foreclosure is when the borrower aggress to trade back the property to the lender in exchange for the cancellation of the note.
If the foreclosure sale date is just weeks away from taking place. We advise you to contact your lender immediately and see if there is any way of exploring alternatives to foreclosure. You would nee to delay or postpone the trustee sale date to move forward with any other alternatives (short sale).
If you are simply unhappy with the current value of the property or it is less than what you paid or owe, you should contact an attorney for advise. Simply walking away from your property could cause you unforeseen and addition financial consequences.
See Henderson Short Sale Listings below:
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