Stop Foreclosure in California and minimize damage to your credit

No longer able to afford your home loan(s)?
Does Continuing to pay your home loan(s) seem like a poor business decision?

Because our Real Estate Brokerage is owned by an experienced Real Estate Attorney many of our solutions are hybrid solutions.

Upside Down Analysis (SM)

Loan Modification or Forebearance

(For those interested in keeping their homes.)

Before you contact your lender and commence your loan modification negotiations, you may wish to consider putting some pressure on your lender by propounding a Qualified Written Request Under RESPA or combining a lender liability audit with a letter of demand and/or offer of compromise written by an attorney.

Note:   there is a new law in California which gives the borrower more leverage against lenders. The law is designed to require lenders to offer loan mods to qualified borrowers.  To learn more fill out our contact form.

Short Sales in California
Short sales can be a very effective way to get out from under your loans.  In many parts of California finding buyers is just a matter of pricing your real estate properly.  Negotiating minimal financial damage for the seller is the challenge.  We suggest you attempt to gain leverage against your lenders before you commence the short sale process.  If you have two loans, it is rarely intelligent to go into default on both loans.

Short Sale Issues to Consider

a. The Potential for Deficiency Judgments after a poorly documented Short Sales
Do not listen to anyone who tells you the lenders will not come after you for the remaining loan balance.  If you have not negotiated the release of deficiency in writing, you have probably left your assets or your salary out as a target for a collection firm.

b. Tax Liability
You must consider tax liability to both the state of CA and the IRS.  Note, the California Mortgage Debt Relief program is not the same as the Feds.

c. Credit
Make sure you understand the downside before you go into default.  If your Realtor starts talking about the one action rule – ask them to put their advice in writing and ask them if they have mal practice insurance.

To get started on your short sale fill out ourcontact form.

Short Payoff

For those of you with two loans – you may wish to attempt to compromise the second lien and then decide what to do about your first loan.  By combining lender liablity strategies against the second lender, we have been able to negotiate short payoffs for 1 to 5 cent on the dollar.  Recently, we compromised a $150,000 second from Bank of America for $1,500. That is an unusually good result but short payoffs can be obtained if the right strategies are put in place before you begin the short sale or workout process.  You may expect the banks to be seeking 10 to 30 cents on the dollar as their bottom line.