Now Helping Struggling Homeowners for FREE!
My associates and I specialize in helping homeowners avoid foreclosure when they are facing financial hardship. One of the processes we use to help homeowners is called a Short Sale.
Our consultation is 100% free, and the fee for our services is free to you! We have helped over 150 families safely navigate through this complex process.
Don't pay for foreclosure assistance or a loan modification before you speak with our professionals and allow us to review your situation. You have more to lose than just your home if your transaction isn't handled by experts right away.
If you cannot afford your mortgage payments and you need to sell your home, our Short Sale process is what you need. We are considered the foremost authorities on short sales in the Central Valley by our piers and community. We even assist Realtors from other Real Estate Companies in preventing loss to their own homes to foreclosure. They come to us because of our success record.
What Exactly is a Short Sale?
A Short Sale is a transaction where the net proceeds from the sale won't cover your Total Mortgage obligation and closing costs, and you don't have any other sources of money to cover the deficiency. A Short Sale is the result of a homeowner who has incurred a verifiable hardship. Hardships may include but are not limited to:
* Loss of Income
* Divorce
* Medical
* Job Transfer
* Increase of Expenses Unplanned for
When a Short Sale is executed correctly, it is a Win-Win-Win Solution for the distressed homeowner, their lender, and the new buyer. The lender will receive the highest marketable price while avoiding the higher costs associated with a foreclosure, the property owner avoids a foreclosure from being entered onto their credit report, and the new buyer gets to purchase a property at today's most competitive prices. Generally, the borrower also receives relief from the possible future legal actions and deficiency judgment if done correctly.
Warning: This is a complex process and most Realtors are not experienced enough or lack the financial and academic background.
Short Sales occur when a borrower (you) sell their property for a sales price that is less than the amount that they owe to their lender(s). In order for this to take place, the lender(s) must accept a discounted payoff. This means that the bank gets paid less than the full loan amount owed. In a Short Sale, the homeowner usually receives a complete or partial relief from all of their mortgage debt after the sale is finalized and avoids a financially crippling foreclosure or bankruptcy on their credit report. From time to time, lenders do require the borrower to sign a reasonable interest free promissory note paying back a small portion of what is owed (usually on 2nd mortgages).
Why Consider a Short Sale vs. Other Options?
When facing financial hardship with your mortgage, there are always several choices to consider. The following sections explain why a short sale is often the best financial choice when compared to others.
Short Sale vs. Foreclosure
A foreclosure may be the most damaging credit consequence of all the options when facing a hardship with mortgage. Not only do you lose your property, but you are generally responsible for the entire difference of what you owe (depending on the state you live in and the type of loan you have) vs. the proceeds from the sale of the foreclosure home. In case a foreclosure, there are additional attorney and court fees that you may also be responsible for. The lender will generally file a judgment for the amount owed, and you will usually be required to repay the judgment before credit will be extended to you in the future (i.e. no cars, credit cards, mortgages, etc.). In the event you do get credit extended to you in the future, you will usually pay a much higher interest rate.
Short Sale vs. Loan Modification
Many borrowers are facing financial hardship due to their inability to keep up with their mortgage payments, and in turn are looking to modify their mortgage. Although this option may make sense for some borrowers, the reality of a loan modification is this:
* They generally DO NOT reduce your principle balance, only the rate of payment for a
limited time.
* They generally allow the borrower ONLY enough room to survive when they consider the
Repayment Plan payments and your budget.
* A modification may affect your credit rating anyway. A short sale won't be that much worse.
* If the wrong financial information is sent to the lender, you may end up accidentally
eliminating the Short Sale as one of your options.
* It may take up to 10 years or more before you see even $1.00 in equity.
* A modification is only an illusion of affordability
The Importance of Hiring an Expert Team
We suggest that the 1st step to a Short Sale is to hire a real-estate team who's expertise and specialty is handling and closing Short Sales. Unfortunately, many Realtors today are learning how Short Sales work with their customer's homes and financial lives on the line. Because the market has slumped severely, ordinary Realtors are forced to move into the Short Sale Service arena. THIS IS NOT THE IME FOR ON THE JOB TRAINING! Don't just trust any agent with your home. Give us the opportunity to show you how our results and process differs form other agent’s teams.
Call our free 24/7 pre-recorded message and discover the financial genius why now is the time to Short Sale!
1-888-200-4310 ext 2221
How to Interview Short Sale Professionals
Warning to Struggling Homeowners: Short Sales are very complex and complicated transactions. It's not just about getting a short sale approval letter. What the letter says is very, very important.
Realtors are becoming desperate because the normal real estate market has crashed. Few homeowners have equity so agents are forced to enter a specialty market that they have little or no knowledge of. Real-estate Companies are now beginning to advertise and market that they are Short Sale Specialists though just a few short months ago they were discouraging their agents and didn't want them to get involved in this arena. Forget the part time Realtors. Forget the Realtors that have less than 10 years experience. This is a full time job fighting with Banks on your behalf. Here are some important questions to ask; if the person you are interviewing cannot demonstrate that they are truly specialists they profess to be, move on. Your financial future is at stake.
1. May I see your resume?
Any real professional will have a resume to present to you. If they don't have one readily available, how would you expect them to be prepared to represent you?
2. How Many Short Sales Have You Successfully Done?
The professionals that you hire should be able to prove they did more than 12 in the last 6-9 months. It's readily available in our local MLS. If not, move on.
3. Can you show me the MLS Agent Ranking Report for your Short Sale Accomplishments?
Great agents specializing in Short Sales are very proud of what they have accomplished. They should be able to show you a ranking report demonstrating how they rank among their fellow piers. If they can't demonstrate that they are at least in the top 10, you need to reconsider who is protecting your future. (I have one available so you are not fooled by the self-proclaimed specialists!)
4. What is Your Academic Background?
Because this is a very complex transaction, you need to know if they have the education to properly represent you. Look for Accounting, Tax, Financing, Legal course work. If who you are interviewing can't demonstrate aptitude in these areas of study, you should move on. Your financial future needs to be protected.
5. Can you explain how I may or may not be affected by CA Civil Procedure 580B?
This is important to you. This deals with Recourse vs. Non Recourse Loans. This means that if you are not given the right information about your type of loan(s) you may end up owing your lender the short fall and they will seek a judgment against you. If the person you are interviewing doesn't have a sound grasp on this important procedure, (Though we can't give you legal advice) RUN!
6. What can you tell me about Debt Relief and how that may impact me?
Again, the professional you hire (though we do not give legal or tax advice) should be able to reasonably discuss this subject with you. It is important for you to know if you are going to have tax problems before you start the Short Sale process. You, of course, are encouraged to seek advice from an Attorney or Tax Consultant before entering into a contract to Short Sale.
7. Should I stop paying my payments?
Here it gets tricky. The professional you hire should not give you any advice on this matter. We are not Attorneys and we cannot tell you to miss payments. We all know that it is easier to do the short sale if you miss paying the lender. If the agent you hire is working in your best interest and not their own, they will suggest something other than go ahead and stop paying. You want someone working in your best interest. Remember we are talking about your financial future!
8. May I see a sample of your case letter and graphs that you send to lenders?
Another important element in successfully negotiating a Short Sale is the case letter and package submission that goes to the lender. This is one of the most critical elements. If not done effectively, your lender may not work well with the person you have hired.
We are in difficult times and most Real-Estate Companies are also fighting for their survival. It's all about the commissions for them. We have gone to great lengths to provide struggling homeowners with honest information so they can make the best choice for their futures. We care and work to protect your financial future.We serve the entire state of California and have representatives in most cities. We are CA state licensed and HAFA certified.
To contact us, call our FREE 24/7 pre-recorded message or click "Get Started".
McGrath& Associates |
Rick McGrath, Ph.D |
Veronica Aguirre |
| 1300 H Street, Suite 400 | Broker/Consultant | Sr. Partner |
| Modesto, CA 95354 | drrickmcgrath@aol.com | v_aguirre@charter.net |
