Frequently Asked Questions

Why use us ?

What does it cost to do a Short Sale?
There are NO fees, closing costs or commissions owed by you. We get our fee paid by your bank and ONLY if the short sale is approved and closes. The only costs we ask you to be involved in are those associated with keeping your home in "showing condition" with the utilities on, landscape kept up and everything in working order. If at all possible, we advise you keep making your payments to your Home Owners Association as well as they have the ability to lien the property. In a short sale, sometime the defaulted HOA payments are not paid by your lender as part of the short sale.
We just received a notice of trustee sale or foreclosure notice. Is it too late to do a Short Sale?
In most cases a short sale will take anywhere from 3-6 months to get through. We encourage home owners to stay in their home while we are negotiating with their lender. In most cases, you will not be making your mortgage payment so why pay rent somewhere else. It is a good opportunity for you to save a little money before you move to your next residence.
Will I have enough time to move out of my home?
In most cases, you will have a minimum of 30 days to close the escrow after we obtain short sale approval from your bank. On top of this, we normally know when we are getting close to an approval so more time can be given. The fact is, the short sale allows you to put a little money away while we are negotiating.
I am in the foreclosure process, should I stay in my home or leave?
You should contact your attorney to determine the best course of action. Abandoning your property may have severe negative consequences on your qualification for assistance.
What do I say when the bank calls me?
Be honest and tell them your circumstance. Hopefully, you are working with us and we have had a chance to speak with them on your behalf. We do our best to assist in alleviating those calls.
What if I have a HELOC (home equity line of credit) or additional loans?
In today's market, we often times are unable to generate a sales price high enough to pay off these liens. We have negotiated hundreds of short sales through to a successful closing with this exact scenario. Remember, some second loans and HELOC's have the ability to sue you even after a short sale. MAKE SURE you get the proper guidance to ensure the settlement negotiated is the type of settlement you are wanting. There are to many owners who do not seek out experienced professionals and end up owing lenders or suffer huge tax liabilities.
What does a Notice of Default mean?
If a Notice of Default has been recorded against your property it means your lender has started the formal Foreclosure Process? In California, a borrower must be two months delinquent before a lender can commence a Foreclosure Action by recording a Notice of Default. A home owner has an additional 90 days after the recording of the Notice of Default to work something out with their lender. If nothing is worked out with the mortgage company, the lender than has the option to file the Notice of Trustee Sale. This is typically a 21 day notice before the property is auctioned off at the Courthouse steps.
If my Lender forecloses, can they come after me for the loss?
In order for your lender to recover losses incurred on your mortgage as a result of Foreclosure, the lender would need to do a Judicial Foreclosure. While, theoretically a lender could pursue a deficiency judgment through a Judicial Foreclosure on some mortgages, it almost never happens in California. The lender is normally left with the proceeds generated at the Trustee's Sale or from a sale after acquiring the property at the Trustee's Sale. This is another reason why lenders would prefer to work with the homeowner to solve the problem and avoid getting the property through foreclosure.
Can I just deed my property to someone and avoid foreclosure?
Deeding your property to a third party does not eliminate your obligations related to the loan. Unless the mortgage is paid off when you deed the property, you will almost certainly remain as the party primarily responsible for the repayment of the loan. If the lender eventually forecloses, it will be on your credit record. If you deed your property to a third party you also give up control of the property. It is nearly always a bad idea to simply deed your property to a third party. Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.
Will I pay taxes as income on the bank losses?
While homeowners typically enjoy favorable tax treatment when selling a home, there are a number of exceptions. It is important you know your exact tax situation or potential liability before starting a short sale. It is another reason we have formed the network to ensure you get the answers to these tough questions before you end up with a potential problem with the IRS. The link below will take you to the " Home Foreclosure and Debt Relief guide from the IRS. It is a confusing read, so please keep in mind our network can provide you with a FREE Tax Consultation so you can make the right decision for you and your family.