Frequently Asked Questions : Answers
Can I resolve my own Foreclosure?
It is possible for any home owner to resolve their
own foreclosure sale, however you should research all
potential sources of information and options before
proceeding.
What should I investigate before negotiating a forbearance agreement on my own?
Before you attempt negotiating with your lender you
should call them and request the information required to
be considered for a "forbearance agreement" or "work-out
plan." Pay attention to the amount of time it takes to
speak with someone, as well as, the amount of time it
takes to actually receive the information. Once you
receive the information analyze the amount of time you
have to dedicate to resolving the foreclosure, your
complete understanding of the requirements, and take an
inventory of your strengths and weaknesses as an
administrator before taking on the challenge. Some
resolutions happen easily and some can be extremely
stressful and time consuming.
Why should I pay for your services instead of resolving my own sale?
- Our Experience
- We analyze your probability of successfully
completing the forbearance term before you offer
more money to your mortgage company or pay us a
nickel;
- Our knowledge of what lenders are looking for
expedites the process
- We may negotiate favorable terms that can save
you hundreds of dollars each month and/or thousands
in up front costs required by your lender
- The terms we negotiate may improve your chances
of succeeding through the entire forbearance term
- We will be there for you to answer questions and
help you if you fail. It is important that you
understand that, while in forbearance, you are
technically still in foreclosure and if you fail to
meet the terms of the agreement your lender will not
have to wait 90 days or more to foreclose. It can
happen within a week.
- Many, just like you have tried, become
frustrated with the red tape, and have lost their
homes.
Can I be kicked out of my home before my foreclosure sale date?
While in foreclosure you have a legal right to cure the default
and in most circumstances you cannot be removed from
your property until after the sale. Don't let predators
use scare tactics on you in an effort to force their
terms on you.
Can I sell my home and still live in it?
Yes. Some investors prefer that
there be a tenant making payments on the property.
Depending on the sale price of your home, you may
receive cash at closing and flexible lease payments that
are substantially lower than your previous mortgage
payment.
An investor has made an offer on my house. Should I accept?
Typically, you should not settle for the first offer you receive in
regards to a quick sale. Wholesale buyers rarely begin
with their best offer. Make sure that you speak to
several investors before you accept.
The value an investor placed on my home seems low. Should I believe him?
Do not blindly agree to what value
the potential buyer places on the property. It is rarely
the value they truly believe the house is worth.
I am considering listing my property in foreclosure for sale. What should I know?
It is our recommendation that when
listing a property for sale while in foreclosure make
sure that the listing term does not exceed a minimum of
15 days prior to your foreclosure sale. The realtor fee
could make the difference between an investor purchasing
your property or not, which may force you into a
foreclosure sale.
An investor placed a stack of documents in front of me that I can't understand. What should I do?
Do not sign anything you do not
understand before having it reviewed by someone you
trust in the real estate business or a real estate
attorney. You could be signing over your rights and/or
your property.
The loan origination fees on my "foreclosure bail-out" loan seem high. Can I negotiate with my broker without losing the loan?
Loan Origination Fees are
negotiable and most mortgage brokers use the same few
"hard money" lenders to fund their loans. If you have
time call several loan officers and get information in
regards to their fees. Make sure they know you are in
foreclosure. Most importantly make sure that they have
experience with foreclosure loans before switching.
Can I work with more than one mortgage broker?
Yes. You are not
bound to any one mortgage broker. The one who can get
to closing documents with the best fees, rates and terms
should be the broker you use.
What types of loans are available to people in foreclosure?
There are two major types of
"foreclosure bail-out loans 1)Section 32 "high cost";
and non-section 32 loans. In Arizona, the fees and
associated costs on non-section 32 mortgages (we
recommend a non-section 32 mortgage in most
circumstances) should not exceed 8% and there are
restrictions on the APR . Be very careful when
considering a mortgage that requires Section 32
disclosures.
If I refinance, how long will it be before I can get a lower rate?
It will most likely
be more than one year before you will qualify for a
conventional "sub-prime" mortgage regardless of whether
or not your house is actually sold at foreclosure sale.
Most, if not all, of conventional "sub-prime" lending
programs require at least one year seasoning on notice
of default as a qualification and due to the "sub-prime"
lending collapse it will undoubtedly become even harder
to refinance. Plus most "hard money" loans come with a
prepayment penalty of 2 or more years.
Will Chapter 13 bankruptcy stop my foreclosure sale?
You can file for
emergency bankruptcy protection up until the time of
your foreclosure sale and in most cases it will
"automatically stay" your sale and you will be able to
remain in your property. You should contact a local
bankruptcy attorney to inquire about your rights if you
are interested in bankruptcy.
If my home sells at a foreclosure sale for more than I owe, who gets the money?
Even if your home sells at a
foreclosure sale you may be entitled to the overage or
excess proceeds. Excess proceeds will be determined (in
Arizona) by the foreclosure trustee after deducting
monies for all liens and/or judgments levied against the
property. All, if any, remaining funds are sent to the
County Treasurer for disbursement. You may need to
"homestead" your home to protect the excess proceeds
from going to non-governmental judgments levied against
your home. Speak to your attorney about the need to file
for a "homestead exemption."
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