Contra Costa CA – The Stop Foreclosure Institute recently received a question from Brett. Here was Brett’s question.

“How is the short sale process different for a homeowner versus a rental property? Is the owner of a rental property more likely to have a deficiency judgment and/or be taxed on the deficiency than a someone short selling their own home? Brett.”

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was our answer to Brett’s question. Yes, short selling a rental property is much different.

(The scenarios below are for a property you bought as a rental, not a property you bought to live in and then started to rent out.)

1. Deficiency. In most cases, you will not be dealing with the lenders who will allow you to walk away from the debt. Lenders are going to ask for a promissory note or deficiency much more often on a rental.

You can still short sell without a deficiency, but it won’t be as easy to do it.

2. You are more likely to owe income taxes. Uncle Sam isn’t giving you the same break on cancellation of debt income waiver that a normal homeowner gets.

Check with your accountant on methods that can help you wipe out even this debt.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

The views expressed here are Steve’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sale Question: How Is Short Selling A Rental Different From Your Personal House? is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – In our last post, we agreed that the first step in fixing the flawed short sale process is to acknowledge what the problem is.

We agreed that the problem is that the lenders and investors are losing billions on defaulted loans.

In addition, American Homeowners are losing billions on declining home values caused by a housing market decline caused by foreclosures.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

The next step is measuring the damage and finding ways to fix it. Here is how we suggest that by done.

To analyze the problem properly, someone will need to study the results. Lenders need to start tracking the results of their actions.

The projected outcome from each of the outcomes should be recorded. Each defaulted loan will have several stats.

First will be the expected outcome if they had agreed to a loan modification. They find that out by asking the homeowner what they are willing to pay monthly.

They plug that into an amortization calculator and find out the mortgage amount that payment equates to. For example a homeowner says that can pay $1,500 a month for the next 30 years.

That equates a $264,182 mortgage at 5.5% interest. Measurement #1: Loan Modification: $264,000 could be realized by accepting that loan modification.

If the house is marketed as a short sale, then any and all offers should be recorded. Let’s say a buyer offers to buy the home for $249,000. That would give us Measurement #2: Short Sale Return: $249,000.

The short sale is rejected. The home is foreclosed and sold as a foreclosure. It is put on the market and ends up selling for $218,000. That gives us our final measurement.

Measurement #3: Foreclosure Return: $218,000.

Now we can all see solid numbers on the results. If that lender did reject the loan mod and short sale, then that process needs to be fixed.

With proper measurement there is no more guessing. Solid, pragmatic decisions can be made to fix the problem.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

The views expressed here are Steve’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on The Second Step In Fixing The Flawed Contra Costa Short Sale Process is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – Many homeowners think they have lots of time. “We’ll put out home up for sale in a few months. I know the bank is working to foreclose on it, but we can wait”, they say to themselves.

In order to have a successful short sale, then your agent will need time to submit everything to the lender and for them to process it.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

In addition, it can take a month or more for your home to sell. Buyers don’t always materialize in 2-3 days. If you are less than a month away from a foreclosure sale date, then we can help you.

But every day after that makes it harder. If you are less than a week away from a foreclosure sale, then it is unlikely we can help you. Your lender will have spent months and thousands of dollars on attorneys to get to that point.

They don’t want to waste all that time for nothing. Are you are working on a loan modification, but have short sale as a backup option?

In that case, you can make the short sale process easier by preparing all your documents ahead of time. If you have all of your financial documents prepared, then submitting the short sale will be quick and easy.

That alone will save a lot of time and make the odds of a successful short sale more likely. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

The views expressed here are Steve’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on A Common Contra Costa Short Sale Case Mistake: Waiting Too Long To Put your Home On The Market is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – The biggest advantage a short sale has over a foreclosure is that you can buy your next home much sooner.

Get my Free, Step By Step Loan Modification Guide by clicking here.

Here was our answer to Dan’s Question.

Under current lending guidelines, you can buy another home in 2-3 years after a short sale. After a foreclosure you have to wait 5-7 years in most cases.

(FHA’s current guidelines state that you can get an FHA loan immediately after a short sale, provided that you never missed a payment. If you were in default at the time of the short sale, then you have to wait 3 years before they will approve your loan.)

But, what if you did miss payments and you want to buy another home sooner than that?

There are loopholes in the Fair Credit Reporting Act. Remember, the law was written to protect consumers. It wasn’t written to protect the lenders!

You can use the law to your advantage to get a short sale removed from your credit history. Then, you can fix any other negatives on your credit report.

After that, your credit should be good enough to qualify to buy another home.

Here is why you can have the short sale removed from your credit report. The Fair Credit Report Act requires lenders do certain things before reporting negative credit.

If you lender misses any of these steps, then they are not allowed to post that item to your credit report. Don’t kid yourself; the lenders make mistakes like this all the time.

They are more concerned with getting paid than making sure every credit report is done perfectly. A good lawyer that specializes in this can help you.

They will know the intricacies of the law and help you get the short sale removed from your credit so you can buy another home.

Thinking about a loan modification?Our Contra Costa loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail at steve@stevehansenhomes.com to request a Free Copy.

Or, click here to request a copy.

Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

The views expressed here are Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on I Want To Buy Another Home Right After A Contra Costa Short Sale is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – Sometimes it seems like short sales are tough. “Don’t try to short sale your house. Short Sales never go thru”, people tell you.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

This isn’t true. Here is how one agent beat the odds and succeeded with a short sale.

A member of the Stop Foreclosure Institute told me about a short sale he recently worked on. Here is the story from the member.

“I had a short sale with a large national lender. The loan was owned by Fannie Mae, not the lender. We had an over zealous short sale negotiator.

We had the home on the market for several months and finally received an offer for $180,000. We submitted that to the lender with all the short sale paperwork.

The lender came back and said the price needed to be raised to $257,000 and the seller needed to sign a $50,000 promissory note.

Neither the buyer, nor seller would agree to those terms. At that point, the only alternative was to let the property go to foreclosure. But, I knew that the home would sell for even less than $180,000 and the homeowner would suffer from a foreclosure on their record.

So I did something about it. First, I knew the $180,000 was a good offer that reflected the Fair Market Value of the property. I also knew that Fannie Mae didn’t normally ask for promissory notes.

In fact, Fannie Mae’s policy is to erase the debt when the property is a primary residence. (This home was a primary residence.) Here’s what happened.

I went over the short sale negotiator’s head. I contacted Fannie Mae direct and held a 3 way call with the seller. We found out that the lender had lied. They had never even submitted the offer to Fannie Mae!

They had told us what they thought Fannie Mae should ask for. After I spoke to supervisors in Fannie Mae, I was then called by three different reps for Fannie Mae.

Within 72 hours a supervisor from the lender called up and gave me their net, which was 162k. This was well within the acceptable price of the offer of 187k offer.

The problem was that the buyers were so angry for having to wait 53 days on a 45 day allowance that they walked. However, I met another buyer and we sold the house to them.

The bottom line is the short sale negotiator lied, and got busted lying. I had to send in comparables and beg the BPO agent to get the inside scoop.”

As you can see, some agents are making things happen with short sales. This agent did an awesome job. He thought of calling Fannie Mae direct on his own. As you can see, not taking no for an answer helps you to be successful on a short sale. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sales: How One Agent Overcame The Odds is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – People often wonder why their lender will release their debt in a short sale. Most lenders don’t like to release the debt. But, they agree to do it because they know that policy nets them more money.

They net more because a home usually sells for more money as a short sale versus after it has been foreclosed upon. Let’s go thru a few examples.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Most Short Sales Are Well Kept Up And Attractive To Buyers.

See the home in the top picture? You can see that it is good shape. Most short sales are being sold while the homeowner lives in the home.

The homeowners are able to keep the house up. They keep the inside clean and neat. In addition, they mow the lawn and keep up on the yard.

This makes a big difference in the sales price. Would you rather buy a home that is in great condition or one that needs work?

Now look at the home in the bottom picture. That is an abandoned home in foreclosure. No one is there to keep up on the yard.

Abandoned Home in Foreclosure.

The inside of the home is probably dirty. Vagrants can break into the home. The home is also an easy target for vandalism.

The bottom line is that most short sales are in better shape than a foreclosed home. In fact, they are usually in much better shape.

That is why they sell for more money, thereby cutting the lender’s losses. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.

Important Notice

Steve Hansen, J. Rockcliff Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Why Contra Costa Short Sales Sell For A Higher Price Than A Contra Costa Foreclosure is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – It always amazes me when I hear the stories of agents who talk about horrible short sales are. “Don’t waste your time on a short sale”, they tell homeowners.

“They are a waste of time. The lenders won’t approve them and the process is horrible. The last short sale I worked on took 9 months”, they say.

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

This gives short sales a bad name. Homeowners mistakenly believe that a short sale is impossible. I am here to tell you that is not true.

The Stop Foreclosure Institute has sold and closed many short sales. There are two keys to being successful. First, you have to understand how the process works. Second, you have to keep an eye on the transaction from start to finish.

Here is the closest comparison I can think of on why some agents hate short sales. Let’s say that you are a brand new driver.

You hop into a car, accelerate to 70 miles per hours, turn on cruise control, and then start reading a book. Every 5 minutes or so you look up to check on what is going on with your car.

You aren’t successful at driving a car. Your friend is thinking about learning how to drive. “Don’t even think about driving a car. Driving just doesn’t work and it is impossible to get anywhere”, you tell them.

Is what you just said correct? Is driving a car impossible? No, it’s not! But, many agents make the same claim about short sales.

They have never studied and learned the process. They have never successfully sold a short sale. But, they are sure ready to tell you that it doesn’t work.

Here is what they missed about short sales.

1. You need to be knowledgeable about the process. You need to have a solid understanding of HUD-1s, BPOs, and the short sale guidelines of the entity that owns or insures the loan.

2. You have to stick with the transaction. You need to follow up with the short sale lender regularly. You can’t check in on the short sale every week or two. A lender will often ask for something and want it back within 24 hours.

If they don’t get what they need, then they will close the file. If you agent isn’t checking in regularly, then the short sale file could be closed without their knowledge.

In addition, your agent needs to be able to make sure the HUD-1s and BPOs are accurate. I will explain what those acronyms mean and why they are important in my next post.

Ask the agent you are interviewing why they are important. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sales: What can go bad on a short sale when you hire an agent that doesn’t understand short sales is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – We often get asked if a short sale is even worth the effort. “Why don’t I just let the bank have the property”, sellers tell us. “I don’t ever think I’ll be able to fix my credit to be able to buy another house.”

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

When you are having a tough time financially, it may seem like you will never get back on your feet. But, most people do get back on their feet.

They find another job and start making money again. Their credit will usually be back to normal in 2-3 years.

Why not buy a new home at that time? If you short sale, then you will be eligible to do that. Fannie Mae will consider you for a new loan 2 years after a short sale.

You would have to meet all of their credit guidelines and other lending criteria. Most derogatory credit items such as late payments or collections won’t have as much of an impact when they are 2 years old.

In addition, there are many ways to get derogatory items removed from your credit. The other great option is an FHA loan. FHA allows you to buy a home with only 3.5% down.

Current FHA guidelines will loan to you 3 years after a short sale. Contrast that with the 5-7 year wait required if the home is foreclosed on by the lender.

That is the number one benefit of a short sale. You can get back on your feet and buy another home a lot faster than if the lender forecloses on your home. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at
SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor , Short Sale Realtor. Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sales: Why Should I Short Sale? is provided as a courtesy to our viewers to help them make informed decisions.

Contra Costa CA – The Stop Foreclosure Institute recently received a question from Luis. Here is Luis’s Question.

“I am working on a loan modification on my home. I just don’t want to be upside down and want a fair interest rate. Why should I pay on a mortgage that is twice as much as my home is worth, plus the interest on that mortgage? It just doesn’t make sense.

How can I get a loan mod with a fair interest rate where I am repaying what my home is worth today? Thank for your help, Luis.”

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our answer. You are asking for something that most lenders don’t like to do. Lenders don’t like principal reductions. Here is why.

Principal reductions usually have to be written down right away on their financial books. If you owe them $300,000 and they reduce your loan principal to $150,000, then they immediately have to reduce the company’s earnings by $150,000 for the year.

If they do that on enough loans, then it hurts the CEO’s ability to get a bonus. He may even risk losing his job. I don’t offer much sympathy to CEOs, but that’s how it works.

Here is what lenders like to do instead. They will reduce your interest rate to 2% for 5 years. After that, the interest rate will go back to the original level.

That way the write off will be much smaller than $150,000. It might be a $30,000 write off. That makes a much smaller difference on the CEO’s bonus for the year.

It’s also one of the reasons that most loan mod programs don’t work. The banks aren’t willing to be realistic.

It’s also why I think a short sale is the best principal reduction plan. You get to erase the bad debt. Rent a home for 2-3 years and then buy a new one at today’s market level.

That way you guarantee your principal reduction and don’t waste time arguing for a principal reduction with someone who isn’t allowed to give it to you. Thinking about a short sale?

I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at
SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor , Short Sale Realtor. Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sales: Why Should I Pay Double For My Home? is provided as a courtesy to our viewers to help them make informed decisions

Contra Costa CA – The Stop Foreclosure Institute recently received a question from Phil. Here is Phil’s Question.

“I am a California Resident but have 3 distressed Florida Properties pending foreclosure. Under Florida law a creditor cannot garnish wages. Will investor pursue deficiency? If yes, will they follow FL or CA law? Thanks, Phil.”

Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.

Here was our answer. That is a legal question. Since I am not a lawyer I cannot answer it.

I do know that you can usually short sale in Florida and get the lender to forgive you of the debt. However, there are other things you can do to avoid the deficiency problem.

First, work hard to convince your lender to waive the deficiency. Investment Property Short Sales are tougher because the lenders are more reluctant to waive the deficiency.

But, many lenders will waive it. Others will agree to waive it when you have presented financial statements that show you cannot afford the deficiency.

So I think that over half of the deficiencies will be waived by the lenders. Here is what you can do for the remaining ones. First, depend on incompetence on the lender’s part.

Most lenders don’t have enough staff to handle their delinquent debt. Even if they do have the right to a deficiency in most cases the only thing they will do is call you.

When they call, you simply tell them that you don’t have the money in your budget that month to pay them anything. Don’t say anything more than that and don’t lie to them.

(A lie can get you in legal trouble later on. You are better saying very little and hanging up the phone than lying.)

Most lenders won’t do anymore than “sic” the debt collectors on you. They hardly ever go to court or attempt to garnish your wages. E-mail me for a simple letter that will legally stop the harassing phone calls.

In my opinion, this will enable you to short sale 90% to 95% of all investment properties and avoid paying a deficiency. Here is what you should do if you fall into the unlucky 5-10%.

Hire a good lawyer. They can usually find a hole in their court case and get you out of paying the debt. These lenders are so disorganized that the often do not have all their paperwork in order.

Or, they can find a situation where the lender broke Collection Law. In that case, the lender is usually more than happy to settle with you versus facing a lawsuit.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at steve@stevehansenhomes.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (925) 639-1979

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Contra Costa loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Steve Hansen.

Steve is a Real Estate Agent at J. Rockcliff Realtors. Contra Costa Short Sales Realtor:

Phone: (925) 639-1979. steve@stevehansenhomes.com.

Caring, Competent Representation

View My homes for sale at
SteveHansenHomes.com.

Steve Hansen specializes in loan modification assistance and short sales in Contra Costa California. Contra Costa Loan Modification Help, Contra Costa Short Sales. Contra Costa Short Sale Realtor , Short Sale Realtor. Contra Costa CA Short Sales. Contra Costa Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Steve Hansen’s personal views and do not reflect the views of J. Rockcliff Realtors.

This information on Contra Costa Short Sales: Can I Short Sale Investment Property Without A Deficiency? is provided as a courtesy to our viewers to help them make informed decisions.