Real Estate Column: Questions about foreclosure?
Is your house underwater? Are you in pre-foreclosure? Do you have a NOD or notice of default filed? Is the notice that came form the bank an actual notice of default or just a warning? These are some of the many questions that you may have. If you are felling overwhelmed ask for help. Open those notices ignoring them will not make them go away. Call the help lines that come with your notices, they can help. Call us it’s what we are here for we can help.
What kind of modification can I expect?
Many more lenders are now offering modifications to homeowners in distress. Usually the bank will offer to lower you payment by temporarily lowering your interest rate and extending the loan period to 40 years. These are often more of a temporary solution as the banks seldom offer principal reductions and therefore you still have little promise of future equity. Depending on your goals and situation this may be a good option for you. Need help? Go to www.NACA.com or call 888-302-6222.
What is a “Short Sale”?
A short sale is when the borrower/owner sells a property to a third party during a pre-foreclosure process. It is called a short sale because the owner will sell the property “short” of the balance owed to the lender or the bank.
Can the bank come after my other assets or attach my wages?
California law or SB 458 ensures that once a lender has agreed to accept a short sale payment on a property, all lien holders — those in first position and in junior positions — will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property. www.car.org/newsstand/newsreleases/2011newsreleases/sb458/
What about income tax and the IRS?
Act now! If you are a homeowner whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. There is no guaranty that this will be extended. For more info visit: www.irs.gov/individuals/article/0,,id=179414,00.html
What about scams?
Be cautious of scams. Never pay an upfront fee these are illegal. Do not sign your deed over to anyone or make a payment to anyone other than your mortgage servicer without seeking your servicer’s approval directly.
If you have tried to modify your loan and have been unsuccessful and are thinking of walking away from your house, it’s time to get the facts, we may be able to help you. Even if you have stopped making mortgage payments and have gotten a notice of default, it is not too late. We can give you a comparison
on your options to a Foreclosure. Get an action plan.
Loan modification, Short Sale or Strategic Default Which one is right for you?
Call today and speak with an experienced Short Sale agent to discuss and compare your options. Take control of your situation and start the New Year fresh. Remember to always seek legal and tax advice before making any decisions and if you have any questions or need more information please call, and let me help you make the decision that is best for YOU and your family and not the bank.
Patrick McCarran can be reached at (899) 899-5536. www.PatrickMcCarran.com. Prudential California Realty is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc. The Prudential Real Estate Affiliates, Inc. is a Prudential company. Equal Housing Opportunity.