Loan Modification Secrets

For some homeowners in danger of losing their home to foreclosure, there has been a lot of incomplete information out there. For example, many believe that a loan modification is a “cure-all” for distressed homeowners. While it is true that it can be a good option for some people, it isn’t always the best solution.

There are many more options available to homeowners.

I have put together a list of 5 questions that anyone who is in danger of losing their home should ask before they make a decision.

Has the bank already begun the foreclosure process?

If the bank has already given notice of default, then the clock is ticking. In the past couple of years, there have been cases where foreclosures have taken as long as 2 years before homeowners lose their homes, but those days are gone. Today, foreclosure happens much more quickly, which means that homeowners have less time to educate themselves on their options. A loan modification might be a solution, but there are many other options to consider.

How much other debt do I have?

For some homeowners, a brief, unexpected issue may have put them in a financial bind that is threatening their home. For most homeowners, however, their financial issues are not limited to just their mortgage. Many of these people have found themselves in quite a lot of debt. If you have a high debt-to-income ratio, there is a much smaller chance that a bank will be willing to grant a loan modification because of the chance of redefault. In those cases, the bank may determine that a foreclosure makes more financial sense for their bottom line.

Is the issue that is causing my hardship temporary?

If a homeowner unexpectedly loses a job or finds that a temporary health issue has created the hardship that now threatens their home, but they know that the situation will resolve itself if they can simply buy themselves a bit more time, then a loan modification could be a very good solution. However, if the problems are more widespread and have no real end in sight, then a loan modification will be unlikely to help in the long term because of the high likelihood of redefault.

Is it mandatory that I stay in my current home?

The number one reason why a loan modification is such an attractive option is that it allows the homeowner to stay in their home. By exploring other options, like a selling, renting the home, refinancing or a short sale, homeowners open themselves up to the possibility that there might be a better solution for their situation than a loan mod.

Have I considered other options?

There are lots of other options for homeowners in this situation that will allow them to walk away from an unmanageable mortgage on their own terms. A short sale, for example, allows homeowners to settle with the bank with dignity and with a minimal impact on their credit scores. In many cases, the homeowner can be back on their feet in anywhere from 6-18 months.

Download a copy of my free report entitled “Loan Modification Secrets” at www.ShortSaleLasVegasToday.com and then contact me for a free, confidential consultation.

Shanta Patton- Patton Team, - Short Sale Specialist 702-302-2760, www.SellingLasVegasToday.com , www.ShortSaleLasVegasToday.com , Shanta@SellingLasVegasToday.com, Wynn Realty Group

5 Steps for a Successful Short Sale

Solving Your Mortgage Crisis Just Got Easier

5 Steps for a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1.       Have a verifiable hardship, like unemployment, medical bills, or relocation

2.       Must have a monthly income shortfall

3.       Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency

If you meet these qualifications, follow these five steps to a successful short sale:

1.       Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale

2.       Gather financial information (i.e., bank statements, pay stubs) from at least the last three months

3.       Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford

4.       Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency

5.       Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Shanta Patton- Patton Team, 702-302-2760, www.SellingLasVegasToday.com , www.ShortSaleLasVegasToday.com , Shanta@SellingLasVegasToday.com, Wynn Realty Group

Break Free From Unaffordable Mortgage Payments!

A recent study in Nevada (a state that holds the nation’s highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found that 1 in 4 homeowners chose to “strategically default,” or allow their homes to be foreclosed upon on purpose! 

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they’d soon realize that there’s nothing ‘strategic’ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 1 in 3 Americans with mortgages now owe more than what their home is worth.  And across Nevada, a stunning two-thirds of all homeowners are underwater, making it the state with the highest percentage of underwater borrowers nationally. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.

Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I’ve seen this firsthand.

I can help with the education part—it’s up to you to contact me!

Shanta Patton- Patton Team - Las Vegas Short Sale Specialists, 702-302-2760, www.SellingLasVegasToday.com , www.ShortSaleLasVegasToday.com , *Email Me*, Wynn Realty Group

Buying Short Sales:  What You Need to Know

Good buying opportunities are available, but patience and flexibility play a vital role

If you are looking to buy a home, you may have heard that short sales are among the fastest growing property transactions in today’s market. According to the U.S. Treasury Department, short sale transactions more than doubled in 2011 compared to 2008, and short sales are expected to increase further. You may be wondering: What is a short sale?  Is a short sale right for me? And, how do I buy a short sale?  

What is a short sale?

A short sale can happen when the current seller owes more on the loan than the property is worth and cannot pay the difference to the lender at closing. With these transactions, the homeowner sells the home and the lender agrees to accept the sale price as payment on the loan. 

What does this mean for everyone involved?

·         For delinquent borrowers and for lenders, short sales offer a way to avoid many of the costly impacts of foreclosure. 

·         For buyers, short sales can provide favorable buying opportunities as they are usually priced at or below market value to sell quickly.

Short sale transactions are more complicated and can take much more time than a regular home purchase because a short sale involves negotiations among the current owner, lender (or lenders if there are multiple mortgages secured by the home), and buyer. Consequently, the first two steps in buying a short sale are to closely evaluate whether or not you are a good candidate to buy one and to find a real estate professional with experience in short sale transactions.

A short sale can present you with a good deal – but you need to have time, patience, and diligence for a successful outcome. 

Am I a good candidate for a short sale?                                                    

This is one of the most important questions you will need to ask yourself before considering buying a short sale property. Generally, you are in a good position, if:   

·         You have a lot of patience. Purchasing a short sale requires all of the different parties to approve the deal which typically takes two to six months – sometimes up to a year.

·         Your financing is arranged. It is extremely important that you are pre-approved for secure financing once you begin looking at short sale properties. 

·         You are flexible. If you are flexible with your move dates and do not have to sell a home or break an expensive lease to qualify for financing, you may be a good candidate. 

What is the buying process for short sales?

If you believe that you are prepared to purchase a short sale property, contact Joshua Nieves at Residential Mortgage Services 702-580-5069 today so we can help you:

1. Get pre-approved.  This is a critical step in any real estate transaction – helping you determine how much home you can afford and showing sellers that you’re a serious buyer. Because short sales can take a lot of time, it is important to note that your pre-approval can expire throughout the process. You’ll want to make sure it is always current and that you are financially prepared if the offer is accepted. 
2. Contact Shanta Patton to begin house hunting! You’ll need a qualified real estate professional who has a proven track record in short sale transactions
3. Make an offer.  I can work with you to determine a price that you believe is fair.  Generally, the most successful offer is one that aligns with comparables in the neighborhood. Keep in mind: you can get a good deal when buying a short sale, but you need to be realistic in the offer you submit to seller.  

Don’t forget the home inspection!  Short sales are typically sold “as-is.” You should always have a home inspection to ensure you are financially prepared for any maintenance costs.

4. Obtain seller approval. Typically, this is a quick process and takes one to two days.
5. Wait for lender approval. Now is when you will need to demonstrate patience. It may take a long time before you hear from anyone, and this is to be expected. Your real estate professional will keep you informed as new information is made available.  
6. Move forward with closing. If the lender accepts the offer, you will move forward just as you would with any real estate transaction and should be able to close within 30 days.

A short sale can present you with a good buying opportunity, but because it is such a long process, a “special” buyer with patience and flexibility is required. If you have these characteristics, and are financially secure, contact me and get started today!

Shanta Patton- Patton Team, 702-302-2760, www.SellingLasVegasToday.com ,www.ShortSaleLasVegasToday.com , Shanta@SellingLasVegasToday.com,

Wynn Realty Group

 

Foreclosure Fears Foster True Grief

Reports of foreclosures by the millions have been in the news so much over the past few years that to some, it might seem like the new normal. 

But as a real estate professional who is in the trenches with financially stressed homeowners every day, it never for a second feels to me like business-as-usual.

The prospect of losing one’s home is right up there among the major sources of grief, and often, it goes hand in hand with other tragic setbacks such as the loss of a job, a divorce, death of a loved one, mounting medical bills or skyrocketing mortgage payments.

Unfortunately, the first stage of grief is denial, and that’s even more the case when the threat of foreclosure is looming. No one wants to talk about or admit financial troubles—even when millions of others have found themselves in a similar spot.  It’s completely understandable, but for homeowners who are behind on mortgage payments, decisive action is often the most critical step toward ensuring the best possible solution.

As a real estate professional who has assisted 100’s of homeowners through this difficult time in their lives, I help homeowners to deal with every aspect of the grief and uncertainty that accompanies a mortgage which is no longer manageable. In the process, I help them to get on a path of financial solvency.

If you or someone you care about would like to change the course of a life that’s facing foreclosure, I get it and I can help.  Contact me today!

*Contact Shanta Patton - Patton Team*

Wynn Realty Group, Las Vegas Short Sale Specialists

702-302-2760, *Email Me*, 

www.SellingLasVegasToday.com

www.ShortSaleLasVegasToday.com 

3 Reasons the Term “Strategic Default” Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:

1. 1.      There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
2. 2.      The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
3. 3.      A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.
4. 
   
5. If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today!

Shanta Patton – Patton Team – Wynn Realty Group – Las Vegas Short Sales 

702-302-2760 * Email Me Today! *

www.ShortSaleLasVegasToday.com – www.SellingLasVegasToday.com

As the Mortgage Debt Relief Act expires, Las Vegas distressed homeowners are running out of time.

Time is Running Out: How the Mortgage Debt Relief Act can save you!

In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to the housing crisis and economic crash, suddenly found themselves in danger of losing their home to foreclosure.

The act has helped many Las Vegas distressed homeowners find solutions to avoid foreclosure and opened up options to them that were previously unavailable.

However, the Mortgage Debt Relief Act was always intended to be a temporary solution and it is now set to expire at the end of 2012. For distressed homeowners, this means that time is limited for you to take advantage of this program.

Time is running out. But there is still a chance to change your financial direction and avoid foreclosure.

Contact  Shanta Patton and the  Patton Team Today.

Shanta Patton – Patton Team – Wynn Realty Group – Las Vegas Short Sales – 702-302-2760 – Shanta@SellingLasVegasToday.com – www.ShortSaleLasVegasToday.com – www.SellingLasVegasToday.com