Time and time again we get a frantic call from a past client saying, “HELP! I’m being foreclosed on and my property’s going to Trustee Sale tomorrow morning!”. Well, being short sale specialists in Glendale, Burbank and San Fernando Valley, we always recommend that if you’ve been served with a Notice of Default, the time to start finding the solution is YESTERDAY. We work with our clients to truly help solve their foreclosure problem rather than delay or prolong the inevitable. Here’s what we’ll recommend to most of our clients in distress:
- Value – You NEED to know your property’s current market value. We’ll provide you with a free Property Valuation report.
- Loan Mod? – Have you spoken to your lender about a loan modification program? Before anything else, talk to your bank. If you’ve already tried going through the repayment programs and still can’t keep up, then move towards the next step.
- No BK Please – It’s always a good idea to avoid bankruptcy. Although your attorney’s opinion of filing for a Chapter 7 or 13 bankruptcy may help you get out of the situation temporarily, you really need to consider if that’s the right option for you.
- Consider a Short Sale – Many property owners in distress absolutely refuse to let their property go. Homeowners, especially, tend to have a sentimental attachment to their properties. That’s really the way it should be, right? With that being so, their Realtor or broker will promise them they’ll “try to find a buyer who will lease it back to you!” and put it on the market way above market value. What happens? The property stays on the market for months, while the property owner deals with the lender’s harassing phone calls and dozens of other brokers and attorneys calling to try to “sell” him something.
As much as we hate it to admit it, it’s best to face the grim reality. After exploring options like refinancing, bankrupcty, loan mods and other “creative tricks” that are possible, if you still don’t feel comfortable, we don’t really blame you. This property (which has probably become a black hole of money) is a great candidate for a short sale. A short sale is when your bank agrees to take less than the actual loan amount as a payoff for the note. A property that is worth less than what is owed on it is a perfect candidate for a short sale.
Here are some key benefits to selling your property via a short sale:
- Be released from liability of the loan and free of any future promissory notes.
- Homeowners will be able to live in the home for free during the sale and have time to make other living arrangements.
- Avoid bankruptcy!
- Owner/Users may be able to lease back from a third-party buyer.
- Avoid foreclosure on your credit history.
- Be free of the emotional burden of foreclosure and distress.
- PEACE OF MIND.