Distressed Owners - How to Avoid Foreclosure

Topics covered below are:

Why Consider a Short Sale? | Foreclosure versus a Short Sale | The Short Sale Process | What Do I Need? | FREE Consultation with Trained Short Sale Specialists

Is the balance on your home greater than the value of your property? Are you facing foreclosure? Were you denied a loan modification by your lender? Have you considered a Short Sale?

When a homeowner is "upside down" in their property (owes more than the home is worth) and is not able to pay on their mortgage due to a loss of a job, lack of funds, or a hardship, we assist the homeowner by selling their home in a short sale where the lender agrees to accept less than the amount owed on the mortgage. Our clients have told us that completing a short sale of their home had a tremendous impact on their life, their family, and their health.

Why Consider a Short Sale?

Whether you own a condo or a multi-million dollar estate, here are a few reasons why a short sale could be the best solution for you:

Did you know that a short sale helps avoid foreclosure and may let you stay in your home longer?
No hidden fees or costs for you.
A short sale can provide relief from debt and can save you thousands of dollars.
It can get you out from under a debt that you are unable to pay with no future recourse.
A short sale is better for your credit than a foreclosure and can allow you to re-enter the home market sooner.
A short sale can help you if your loan modification was denied, you didn't receive a principal reduction on your loan, or you have been waiting months but your loan modification is going nowhere.
Our Short Sales Specialists have all received extensive training in the short sale process and have in-depth experience in dealing with short sales.
We have the resources and contacts with key decision makers at banks to get your short sale approved.

A short sale is the best option for homeowners who are upside down on their mortgage and unable to make mortgage payments, facing foreclosure, and looking for a way to stop the foreclosure process on their home. Many homeowners believe that their only option is to let the bank foreclose and begin a new life with the burden of a foreclosure on their credit history. We believe that a short sale is a much better option because a short sale will prevent further credit damage, help remove your mortgage debt obligations, stop the foreclosure process often within days, and present a solution to the lender.

At Urban Green Real Estate, we will evaluate your specific situation and guide you through the best possible solutions. We understand that you are facing a hardship and are here to help build a case to your lender. Best of all, our short sale service is 100% FREE to you!

Call us today to set up a FREE consultation to evaluate your situation.

Contact Urban Green Real Estate

Northern California:
Call Toll-free 888-732-2988 or email info@urbangreenre.com

Southern California:
Call Toll-free 800-473-3603 or email socal@urbangreenre.com

Foreclosure versus a Short Sale

Did you know these differences between a Foreclosure and a Short Sale?

Foreclosure

Short Sale

A homeowner who loses a home to a foreclosure is usually ineligible for a loan for a period of 5 years.	A person with a successful short sale can be eligible for a mortgage after 18-24 months.
Your credit score might be lowered anywhere from 150-300 points. This could affect your score for over 3 years!	Your mortgage should be reported as paid or negotiated, lowering your credit score as little as 50-100 points!
A foreclosure will remain on your credit history for up to 10 years or more, which can severely affect your ability to receive credit.	A short sale is not reported on a borrower's credit history. The loan is typically reported as "paid in full, settled".
Employers actively check the credit of new applicants and employees in sensitive positions.	A short sale does not affect employment since it is not reported on your credit history.
In certain foreclosures, the bank will come after 100% of the deficiency balance.	In almost all short sales, the deficiency balance is completely forgiven.

The Short Sale Process

A short sale is the sale of your real estate, where the loan balances are greater than the amount the property can be sold for. This usually occurs when home prices are falling, and the seller is in financial distress from either a decline in income, a job loss, or a significant increase in monthly loan payments. Successfully completing a short sale can lessen the impact on a seller's credit score. On the other hand, a foreclosure can severely damage the borrower's credit score for the next seven or more years, and any future loans will have much higher interest rates in almost all cases.

A short sale is typically done just before or after the foreclosure process starts, often after a "Notice of Default" has been filed or when two loan payments have been missed. A short sale will often stop the "Trustee Sale" which occurs at the end of the foreclosure process.

You might wonder why a bank would agree to a short sale. Banks are in business to make money through loans. When a loan on a property is in foreclosure, the borrower has defaulted on the loan or not paid on the mortgage. The loan becomes non-performing and banks are required to keep large amounts of money in reserve to cover these loans. Banks are more eager lately to have these properties sold through a short sale rather than try to sell the property at a Trustee Sale. If the property doesn't sell there, it would be taken back by the lender as a REO (real estate owned) since often no one bids on the property at the Trustee Sale. The foreclosure process is long and expensive for the lender.

What Do I Need?

Working with Urban Green Real Estate's Short Sale Specialists includes sending the lender a Short Sale Package which usually includes forms from the lender, many documents from the borrower showing that they can no longer pay the mortgage and must sell the property at a loss, with the only other alternative being foreclosure.

The package will include a detailed letter from the homeowners, pay stubs, financial statements, medical bills, divorce decree, and more. Most important, the package must include an offer to purchase from a qualified buyer. In most cases, the lender will not consider a short sale unless it includes a written offer and other financial documentation from an interested buyer.

A short sale can be a lengthy, complicated process and can take three months or more to complete the sale. Much of the success in achieving a successful short sale depends on the motivation of the seller and the expertise and experience of the real estate agent.

FREE Consultation with Trained Short Sale Specialists

At Urban Green Real Estate, our owners and brokers are all Certified Foreclosure and Short Sale Specialists, and have the experience, training, and know techniques for getting short sales approved quickly. We also work with many homebuyers and investors who are ready to make offers on properties immediately.

We at Urban Green realize that being in the middle of the foreclosure process can be very stressful and frightening, especially when you don't know what your options are or how to start the short sale process. As experienced real estate professionals, we are committed to working with you to explain the steps involved in applying for and carrying out a short sale.

For qualified applicants, we are dedicated to help you get through every step of the short sale process so that you can come out of it with a lessened impact on your credit record, avoid the unpleasant home foreclosure and eviction process, and move on with your life to build a far better future.

Call us directly for more information and to set up a FREE consultation.