Silver Lake Are Homes and Information

Los Angeles Short Sales- The bank Can No Longer Come After You for the Balance Owed!

If you need to short sell your Los Angeles home, now you can do that without worrying that the bank will come after you for the balance due. A short sale is when the owner of a property owes more on the loan than the property can currently be sold for. The owner must get the sale approved by their lender/lenders because the amount owed will be “short” of what is currently owed on the property. Since January of this year, California residents who need to short sell their homes have been protected against the first lien holder coming after them to pay the balance owed after the sale.  SB 580e, took care of that for us and applies to single family homes and income properties up to 4 units.

Many Sellers Have Multiple Loans

Most underwater Los Angeles property owners have more than one loan against their property. This can make get a short sale approval from more difficult because many times the loans are held by different lenders/mortgage companies. The secondary lien holder or “junior lien holder” (holder of the smaller note against the property) would often pursue the seller for a deficiency judgments after the short sale closes.  It can be a scary situation to complete a short sale of your Los Angeles home, only to find that secondary lien holds decide they want more than what they received through the short sale process and might come after you for the difference.

If this has been your fear, you can now rest easy. Californians looking to short sell their property are now protected from junior lien holders as well, thanks to Senate Bill 458 that was signed into law on July 15, 2011 and went into effect immediately. The new law prohibits secondary lien holders from pursuing a seller of a short sale property for additional monies owed after the sale is closed. This is truly a victory for California homeowners!

If you find yourself in the position of no longer being able to make the payments on your Los Angeles home, a short sale is now an even better option than foreclosure or bankruptcy than it already was. You can short sell your house and rest assured that once the sale is complete, you can close the books on those loans and never have to look over your shoulder.  The new law ensures that once a lender has agreed to accept a short sale payoff on the property, ALL lien holders must consider the outstanding balance as paid in full.

Know Your Foreclosure Alternatives

Are you in a difficult financial position and having trouble making the payments on your Los Angeles home? There are a number of foreclosure alternatives from a trial mortgage modification to a HAFA (Homes Affordable Foreclosure Alternative) short sale.  If you thought a Los Angeles short sale was not a viable option due to multiple loans on your property, set your mind at ease. I have been successfully closing short sales in the Silver Lake, Echo Park, Los Feliz, and surrounding areas and can help you determine the best solution for you whether it is a loan modification to retain your home or a short sale to sell your home and free yourself from your mortgage debt. If you are in a tight position and are not sure of your options, please fill out the online contact form , or better still, give me call today at 213-215-4758.

Jenny Durling
Broker Associate
L.A. Property Solutions
213-215-4758
http://www.LApropertySolutions.com

Copyright © 2011 By Jenny Durling *All Rights Reserved * Los Angeles Short Sales- The bank can no longer come after you for the balance owed!*

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Short Sales and Los Angeles Short Sale Alternatives

When the real estate bubble burst, a lot of homeowners found themselves on the losing side in terms of property ownership. There are a lot of people with monthly mortgage payments that exceeded their monthly net income. In combination with the drop in property values, a lot of folks have been left not knowing what to do. It is due to this dismal situation that the short sale became a household name.

Realize, that if your property has enough equity in it, you can sell it through conventional channels. If the amount owed on your property is more than what is is currently worth, you might be a perfect candidate for a short sale.  I've written previous posts about short sale and you can click on any of these links for more information.

•  What is a Short Sale?
• What is a hardship and do I qualify for a short sale?
• What is a Short Sale package?
• Is a short sale better than a foreclosure?

If you are truly in a hardship position and cannot sell your home for as much or more than you currently owe, a short sale could be the right choice for you. If there is equity in your home or you have money in the bank, there are a few options that could allow you to stay in your property.

Refinance. This option would allow you to replace your current mortgage with a new one. You will need to have a certain amount of equity in the property to qualify for this option.

Reinstatement.  If you are in pre-foreclosure but have come into some extra money, you may be able to reinstate your existing loan by paying the entire defaulted amount as well as interest and late fees.

Loan Modification. If you are gainfully employed and simply not able to cover your current mortgage, it is possible that your lender will work with you to adjust the loan either in terms, amount  and/or interest rate. Your mortgage will want you to demonstrate a reason (or hardship) for your inability to keep up with the mortgage and will likely give you a trial modification before making any permanent changes.

Forbearance.  Your existing mortgage could allow you leeway in bringing your loan current. They may allow extra time for over due payments, add late payments to the principle or any number of things to allow you to ‘pick up where you left off' and not get further behind on your loan or farther down the foreclosure path.

 If you have exhausted these options or simply are not qualified for them, you can go one of these routes: 

Deed in lieu of foreclosure. In this option you essentially give the property back to the bank instead of proceeding with a foreclosure. There are definite negative impacts on your credit rating and ability to obtain a loan in the future if you go this route.

Foreclosure.  If you take no action at all, eventually the bank will simply foreclose on the property. It will be sold at a trustee's sale and if you have not already vacated, you will be evicted by the sheriff. Again, your credit will take a giant hit! 

Bankruptcy. This option can liquidate debt and postpone a foreclosure sale. You lender may impose requirements as to property condition and tax status. You would definitely want to speak to an attorney before going this route.

 There are many things to take into consideration when deciding what move to make. f you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * Short Sales and Los Angeles Short Sale Alternatives*

What is a HAFA and can it help with the short sale of my Los Angeles Home?

HAFA stands for Homes Affordable Foreclosure Alternatives. The purpose  of HAFA is to help home owners avoid foreclosure through short sales or deeds in lieu of foreclosure. What started out as a voluntary program for streamlining the short sale process is now mandated for 90+% home loans serviced by lenders. The program is effective until December 31, 2012.

HAFA is available to those who:  

•  Do not qualify for a trial mortgage modification under the Making Home Affordable Program
•  Have tried but not successfully completed the trial period for their modification;
•  Miss at least two consecutive payments during their modification period

Or

• Request a short sale or deed-in-lieu of foreclosure.  (If the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure in which the borrower voluntarily transfers ownership of the property to the servicer.)

If you can no longer afford you home and want to avoid the negative effects of foreclosure you should determine if you qualify for HAMP -Home Affordable Modification Program. If you do not qualify for a modification,  HAFA could be the right option for you. The Home Affordable Foreclosure Alternatives (HAFA) Program offers financial incentives to encourage and increase participation of mortgage servicers and the investors to complete a short sale or deed-in-lieu of foreclosure in a timely and smooth fashion. The home owner is relieved of the mortgage debt and is also able to walk away with some cash in their pocket.  This is different than a ‘regular' short sale in which the seller is not allowed to receive any compensation at all. The amount the seller receives depends on the type of loan they have and which program their servicer falls under.

To be eligible for a HAFA short sale, all of the following requirements must be met:

1. Property must be borrower's principal residence
2. Loan must be a first trust deed originated before 2009
3. Loan must be either delinquent or default must be reasonably foreseeable
4. The unpaid balance of the loan must be $729,750 or less for single-family home (or higher amounts for 2-to-4 units)
5. Borrower must be eligible for, but unable to complete, a loan modification under the Home Affordable Modification Program (HAMP).

Like so many Federal programs, there is really nothing straightforward about the HAFA program. Much depends on who services the loans. Freddie Mac has different requirements than Fannie Mae which are different than non-government entities' versions of the program. Mortgage servicers and investors use the Federal requirements of HAFA to write their own guidelines and determine how to implement the program. There is a lot of information available at the Making Homes Affordable site but before making any decisions, it's best to speak to a professional about your current situation and what options are available to you.

If you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * What is a HAFA and can it help with the short sale of my Los Angeles Home?*

What is HAMP and can it help me modify the loan on my Los Angeles Home?

If you can no longer afford to make your monthly loan payments, it is possible that you can qualify for a HAMP loan modification to make your monthly mortgage payment more affordable.  HAMP stands for Home Affordable Modification Program and it offers eligible borrowers the opportunity to modify their loan to lower their monthly mortgage payment to 31 percent of their verified gross (pre-tax) income to make their payments more affordable. If you are currently having difficulty making your payments, even if you have missed one or more payments, you may be eligible for the Making Home Affordable HAMP option. 

To be eligible for HAMP, the following four items must apply to you:

• Own a one- to four-unit home that is your primary residence
• Have received your mortgage on or before January 1, 2009;
• Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31 percent of your gross (pre-tax) monthly income; and
• Owe an amount that is less than or equal to $729,750 on your first mortgage for a one-unit property (there are higher limits for two- to four-unit properties).

Foreclosure is not the best option! If you qualify for HAMP, you must complete a trial period of three or four months at your modified payment amount to demonstrate you are able to make the payments on time before your mortgage will be permanently modified.  The modification can be accomplished in a variety of ways.  To make payments more affordable, your interest rate may be lowered, the mortgage term may be extended up to 40 years or a portion of the principle amount owned could be forgiven. These things will be up to the servicer of your loan.

Even if you don't qualify for the HAMP program, don't let the bank foreclose on your home.  There are other options like HAFA (Home Affordable Foreclosure Alternative), deed in lieu of foreclosure or a standard short sale. Read this post for information on qualifying for a short sale. Any of these can be better alternatives for you credit and for your peace of mind than a foreclosure.

 If you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * What is HAMP and can it help me modify the loan on my Los Angeles Home?*

Can't afford your home? Letting the bank foreclose is not your best course of action!

There is a tendency for people in financial straits to ignore their problem until it is too late.  Don't sit back and do nothing when there are options out there that will do much less damage to your credit and might even allow you to keep your home. If you simply let the bank take your home without trying a workout alternative, you won't be eligible for a new Fannie Mae-backed mortgage for seven years from the date of foreclosure.

Not enough has been written about the Home Affordable Modification Program (HAMP) and the Home Affordable Foreclosure Alternatives Program (HAFA) so many people who might qualify are missing out on the advantages.

HAMP is designed to help people modify their mortgage and stay in their home. If they don't qualify for a HAMP modification, they may still be able to qualify for a HAFA short sale. A HAFA short sale is a much smoother process than a non-HAFA program and actually provides some cash to the seller at the end of the transaction.

There are different qualifications for the programs depending on whether or not your home loan is held by a government entity (Fannie/Freddie) or not, the rules of which would be too complicated to put in a single post. If you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * Can't afford your home? Letting the bank foreclose is not your best course of action!*

Short Sales In Los Angeles- Why a Short Sale is better than a foreclosure

I've been exploring the Los Angeles Short Sale process, specifically short sales in the Silver Lake area. By now you know what a short sale is, what might qualify as a short sale hardship, and what goes into a short sale package. 

If you are in the midst of financial issues and are having trouble paying your mortgage, a short sale is preferable to a foreclosure for a number a reasons. You may be feeling powerless and like everything is outside of your control.  You can get some degree of control by working with an experienced Realtor and short selling your Los Angeles home. The worry of being evicted by losing your home to the bank can be eliminated if you are in the process of negotiating a short sale with your lender. The trustee's auction can be postponed or cancelled completely during the short sale process.

 Working with a qualified Los Angeles short sale agent to sell your home will allow you to determine your own escrow closing date, much like a normal sale once the short sale has been approved by the bank, giving you time to pack and move without fear of eviction. You can also save yourself from any potential embarrassment of losing your home to foreclosure.

One of the main reasons to short sell your Los Angeles home rather than let it go to foreclosure is to protect your credit rating as much as possible.  A foreclosure has major negative effects on your credit and will stay on your report for 7 years or longer. A short sale is normally reported as a settled account, having a much lighter impact on your credit. A successful short sale could allow you to buy another home in as little as two years!

Don't get me wrong, a short sale will definitely have a negative effect on your credit rating but it could allow you to buy another home much sooner than a foreclosure would. Fannie Mae requires a minimum of 2 years to re-establish credit after a short sale before allowing a new mortgage.  However, if you meet specific criteria, you may be able to qualify for an FHA loan right away. FHA will loan to those who remained current in their mortgage and other installment debts throughout the short sale process, had a verifiable hardship that allowed for the short sale, and currently have a credit score of at least 620. A mortgage lender can give you complete list of requirements.  Even if you don't fit this profile, you may be eligible for a new FHA loan in as little as three years.

Think about the advantages of a short sale over a foreclosure before it's too late and the decision is made for you. If you are in a tight position and are not sure if you qualify for a short sale in Silver Lake or surrounding areas, please contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and make recommendations on your best course of action. For legal and tax advice you will need to speak with a CPA and/or attorney.

For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * Short Sales In Los Angeles- Why a Short Sale is better than a foreclosure

Short Sales In Los Angeles, California - Am I qualified to short sale my Silver Lake home?

If you are not clear on exactly what a short sale is, please read my post about what buyers and Sellers should know about Los Angeles short sales.

You may own a house in Silver Lake and you now owe your lender more than the house is work, but that doesn't mean you automatically qualify for a short sale. Most people who bought property in Silver Lake and the surrounding areas during the height of the market are in that position.  We can't all just decide we don't want to keep making our payments and expect our lender to take a huge loss.

Lenders have certain standards to determine whether they will approve a short sale or not. The main issue is that you must have some sort of hardship, meaning, there must be a verifiable reason that you can no longer keep your home. If you can qualify for a mortgage modification that would be the thing to do rather than short sell.

If you cannot qualify for a mortgage modification, your lender will want to make sure you pass The Hardship Test.  Do any of these apply to you?

Since you bought the house:

•  Must you relocate to another city or state for work and you need to sell your house in order to move?

•  Has the interest rate on your home gone up so high that you could no longer qualify for the loan and you are no longer able to make ends meet?

• Have you lost your job?

• Has something happened to you that is keeping you from being able to work, like a major accident or illness?

• Have you incurred large medical bills that are making it impossible for you to pay your mortgage? 
  

• Have you lost your spouse due to death, divorce or separation?
  

Each lender will look at every situation individually but any of the above could be reason enough for them to cooperate with you in the short sale of your home.  However, there are things that are definitely NOT considered hardships which could prevent you from successfully short selling your home.

•  You took all of the equity out of your house to spend on something else

•  You bought your house when prices were high and now it's not worth as much and you are upside down in your mortgage

• You were not honest on your loan application when you bought the property. It was so easy to get a no-doc loan that many people lied about their income and assets and bought homes they could not truly afford. If this was you, your odds of a successful short are limited.

• You have money in the bank, stocks and bonds and/or equity in other properties. - You may still be able to get a short sale but chances are that the bank will expect you to shoulder some of the loss and bring money to the closing table.

If you are in a tight position and are not sure if you qualify for a short sale in Silver Lake or surrounding areas , please contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and make recommendations on your best course of action.

For more information on shorts sales in Los Angeles County and buying or selling property in Los Feliz, Silver Lake, Echo Park,  and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate
Keller Williams Realty, Los Feliz
213-215-4758
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *All Rights Reserved * Short Sales In Los Angeles, California - Am I qualified to short sale my Silver Lake home?