Are you in financial distress because of your mortgage?
Do you need to get out from under a payment that has become too hard to manage because you've lost your employment or your ARM has reset? Perhaps you are facing
divorce or job relocation?

If so, you are certainly not alone. Hundreds of thousands of other Americans are in that leaky boat with you, and there's no easy way out. But you do have choices, and you should take a look at all of them before deciding what to do.

You the seller are faced with a tough position, first you must understand what your rights and know what options are available to you.

You may have three or four choices including keeping your existing home and lowering your monthly payments. Time is of the essence, the sooner you contact us the more options you have.

Just fill out the form below and we will give you a free analysis of your situation and outline your choices. There is no cost or obligation for this consult and it is totally confidential.

Below are some of the option you may be able to consider:

1. Refiance (If current, take advantage of current low rates to decrease mo. pmt)
2. Sell and Bring Cash to closing (Liquid assets brought to bring up balance due)
3. Lender Workout (Loan modification, Forbearance, Reinstatements, Repayments)
4. Short Sale (Bank will accept a pay off less than owed to avoid foreclosure)
5. Investor Exchange (Lease Options, wraps and qualifying and un-qualifying assumptions)
6. Bankruptcy (If you desire to stay in the house, contact legal counsel for protection)
7. Deed in lieu of foreclosure (just trade over property to lender to cancel out the note)
8. Foreclosure (Bank takes over possession and attempts sale on courthouse steps)
9. Walk-away and Do Nothing

Bankruptcy has helped some consumers. The courts now have the authority to let you keep your home and either forgive a portion of your debt or modify the terms so you can make the payments. If you're also buried in medical bills, credit card debt, or other obligations you simply can't meet, this might be the best solution.

But... bankruptcy stays on your credit report for 10 years and could keep you from moving forward in life. In addition, it places some restrictions on your life that you might find very unpleasant. It might not be the best choice for you.

Foreclosure is another option. You can simply quit making the payments and stay there until they knock on the door and tell you the bank now owns your home. For some this is a chance to live rent and payment free for several months and put away some money for a deposit on a rental home. But again - the effect on your credit rating is dire.

In addition, you run the risk of a huge financial obligation that will follow you around forever. When the bank sells your house at a loss because the market has fallen, they might be able to come back on you to make up the "deficiency" between your mortgage balance and the dollars they collected from the sale of the house. This is another area where the rules keep changing, so check this before you act.

If done correctly, a Short Sale could be the best option for you. You list and sell the house for the current fair market value and walk away with no money, but a fresh start. At least, that's what will happen if you list the house with an agent who is experienced in handling successful short sales.

The truth is, your lender can also come back to you for a deficiency in a short sale. It's one of those details that must be negotiated with the asset manager and the lender before you sign the closing papers.

Unfortunately, many real estate agents today are listing short sale properties without knowing how to conduct that negotiation, and their sellers are paying the price for that lack of knowledge.

In other cases, listings that begin as short sales end up going into foreclosure.

Success in a short sale relies on 3 primary areas of expertise: Pricing, Paperwork, and Persistence. Before you list with any agent you need to know that he or she is skilled in all three areas. Otherwise, you could end up in foreclosure despite your best efforts.

To learn the secrets to short sale success, simply fill out the form on this page.

The Short Sale Process

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

A few examples of a hardship are:

· Unemployment / reduced income

· Divorce

· Medical emergency

· Job transfer out of town

· Bankruptcy

· Death

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but -- with the exception of Wachovia, which is the best short sale bank in the world -- the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:

· Letter of authorization, which lets your agent speak to the bank.

· HUD-1 or preliminary net sheet

· Completed financial statement

· Seller's hardship letter

· 2 years of tax returns

· 2 years of W-2s

· Recent payroll stubs

· Last 2 months of bank statements

· Comparative market analysis or list of recent comparable sales

Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value. The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers.

· After the seller accepts the offer, the listing agent will send the following items to the bank:

· Listing agreement

· Executed purchase offer

· Buyer's preapproval letter and copy of earnest money check

· Seller's short sale package

· If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package.

· The Short Sale Process at the Bank

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don't get an answer within a specified time period.

That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:

1. Bank acknowledges receipt of the file. This can take 10 days to a month.

2. A negotiator is assigned. This can take 30 to 60 days.

3. A BPO is ordered. The bank probably will refuse to share the results of the BPO.

4. A second negotiator may be assigned. This can take another 30 days.

5. The file is sent for review or to the PSA. This can take 2 weeks to 30 days.

6. The bank may then request that all parties sign an Arm's-Length Affidavit.

7. The bank issues a short sale approval letter.

How to Write a Hardship Letter

Short Sale Hardship Letters often make or break the result of you selling your home as a short sale. Banks focus on the hardship letter to see how you're really affected personally with your financial situation. Learn how to write the best short sale hardship letter possible to get the bank to approve your short sale.

Instructions

1. • 1

     First brainstorm about your hardship. Sit down, and write down every idea that pops in your head about why you can't afford your house. Why are you having financial difficulties. Loss of job, medical bills, increased property taxes, child's college education tuition, divorce, credit card debt, etc. Write every possible thought that has any affect on your financial situation or your wanting to get rid of the property. It doesn't matter what you write down. Don't think too much, just write whatever pops in your head. Sit and write until you have at least 5 ideas. If you don't have 5, you're thinking too much. Just write whatever pops in your head.

   • 2

     Now look at your hardship letter brainstorm list and pick the most obvious ones that have the most affect on your financial situation and ability to make payments on the home. Look at the list as if you were Countrywide, or Washington Mutual, or your specific bank. Which hardships would you look at as the most crucial? Once you select 3 or 4 hardships, focus on them and explain exactly why they are affecting your ability to make payments on the loan. (For example: I was laid off on Sept. 27 and as a result, my monthly income has decreased by $2,100.)

   • 3

     Now you're ready to begin writing and putting together your hardship letter. Rule # 1, make your hardship letter less than one page, paragraph form. Short sale department reps look through many letters. They don't want to be reading a novel to find out why you can't afford your mortgage payments.

   • 4

     Line 1: At the top of the hardship letter type your bank's name that you are requesting the short sale from. Line 2: put their address. Line 3: type their phone number and fax number. Skip a space. Line 4: type the date. Line 5: type "RE: Request for short sale - (Your Loan # and Property address)."
     Skip a line and start your letter with: "Dear (Bank's Name) Representative:"

   • 5

     First paragraph: State a change. Mention what change took place why you can no longer afford your payments. Keep it brief and simply let them know that some change happened between the time you bought the home and now which has affected your ability to pay your mortgage loan. Ex: "There has been significant changes in in my financial situation since I purchased my home in October 2001."

   • 6

     2nd paragraph: State why your area is bad. Ex: "My property is located in ______ town. The taxes have increased, property values have declined, there are 5 foreclosures on my street, etc." List any bad circumstances for your specific location.

   • 7

     3rd and or 4th paragraph: List any of the following and explain using details and specific numbers as best as you can.
     • wrong doing by mortgage loan broker, bad adjustable mortgage loan on the property.
     • hardships (income I depended on is no longer available, increased bills, inability to work due to health or disability, etc. - from your brainstorm list).

   • 8

     Final paragraph: Clearly state that you "cannot pay" and need to short sale the home. You don't have any other options available. State your intent: do you want to keep your home or not? Leave your contact info or short sale agent's contact info if they require further information.

     Sign, date, and give to your short sale agent, attorney, or bank.

Read more: How to Write a Short Sale Hardship Letter | eHow.com http://www.ehow.com/how_4691440_write-short-sale-hardship-letter.html#ixzz1eEVxtlnD

In today's rapidly changing economy, home owners are faced with new challenges everyday just trying to hold on to their jobs, keep their bills current and of course avoid losing their homes and destroying their credit that will effect them for many years to come. Although markets do seem to repeat themselves as history has show us and do occur in cycles, nobody is for certain just when things do plan on turning themselves around. When faced with difficult challenges financially, it tends to effect us spiritually, mentally and emotionally all which can result in negative side effects that affect no only you, but your family, friends and loved ones. Knowing where to turn for guidance and help through these times is certainly crucial and by facing our challenges head on instead of avoiding them; it not only makes us stronger and more wise; it will improve the lives of those around you that care about you and depend on you as well. In fact, it also can improve the lives of your neighbors and surrounding communities.

Lately we have been successfully negotiating and working more and more short sales for those that are truly in need of them, however we also know that many of you have been inquiring about short sale possibilities on your own homes and it is apparent that there is alot of confusion out there regarding short sales.

If I would sum all of this up, even to agents out there I would say that the process of consulting homeowners and sucessfully negotiating short sales is purely an art form and not a science! Each homeowner and their situation is unique as well as each bank’s own policies and procedures are different and unique so there is no universal system that can break all of this down, but there are certainly ways to help minimize the confusion and erroneous beliefs.

You the seller are faced with a tough position, first you must understand what your rights and know what options are available to you.

1. Refiance (If current, take advantage of current low rates to decrease mo. pmt)
2. Sell and Bring Cash to closing (Liquid assets brought to bring up balance due)
3. Lender Workout (Loan modification, Forbearance, Reinstatements, Repayments)
4. Short Sale (Bank will accept a pay off less than owed to avoid foreclosure)
5. Investor Exchange (Lease Options, wraps and qualifying and un-qualifying assumptions)
6. Bankruptcy (If you desire to stay in the house, contact legal counsel for protection)
7. Deed in lieu of foreclosure (just trade over property to lender to cancel out the note)
8. Foreclosure (Bank takes over possession and attempts sale on courthouse steps)
9. Walk-away and Do Nothing

So many times I have agents come to me and tell me that their client would like to pursue a short sale because they don’t have any equity in the house and are being relocated. Unless they are also not making their monthly payments (either full or short pays) at that time they would probably not qualify for a short sale. There MUST be a qualifying hardship present which includes but not certainly limited to:

• Job Loss
• Business Failure
• Illness and Medical Costs
• Divorce or death of spouse
• Natural Disasters

A bank will not desire to perform or be in need of loss mitigation unless they do have a note that is “non-performing” or delinquent. Of course, a Realtor can never advise you to actually “fall-behind” on your mortgage to qualify, but if you do have recourse concerns or questions; it’s always advised to seek advice from a finance, tax and legal professional. The U.S. Foreclosure Network can be a possible source to locate attorneys who specialize in bankruptcy and foreclosure that may help on little or no fees.

There are some other major requirements that would qualify a seller for a short sale such as sufficient time left before foreclosure date, amounts owed and to the number of liens currently on the property, condition of the property and the willingness of the homeowner to do all that is required of them before and during the process. .

One last soap box comment from me and my opinion is that if you are truly in need of some help and guidance, why on earth just call up some “jo-blow” Realtor or any other real estate agent that has little to no experience in not only short sales, but experience in guiding distressed and desperate sellers to getting the right help? There is many resources out there for help available and since everyone’s situation is different, we are always happy to offer a free counsultation to you to see if we can help point you in the right direction.

In the meantime, here are some more very helpful links that will be a great benefit to you:

• www.makinghomeaffordable.gov
• www.hud.gov/foreclosure
• www.foreclosurelaws.org
• http://www.nfcc.org/

Home Affordable Foreclosure Alternatives Program (HAFA)

In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program took effect on April 5, 2010 and sunsets on December 31, 2012.

Home Affordable Foreclosures Alternatives Program: Guidelines and Forms

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available at:http://www.makinghomeaffordable.gov/get-assistance/contact-mortgage/Pages/default.aspx

HAFA Provisions

• Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
• Uses standard processes, documents, and timeframes/deadlines.
• Provides the following financial incentives:
  • $3,000 for borrower relocation assistance;
  • $1,500 for servicers to cover administrative and processing costs;
  • Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
• Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

HAFA Overview

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or DIL.

In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer - provided the title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

The guidelines for HAFA are detailed further in the documents listed below.

Hardship Letter

The most important document of the short sale package is the hardship letter. It is read by a real person (loss mitigator) that have emotions and cannot help be influenced by a sincere hardship story.

Please remember not to be embarrassed about your situation, create a compelling letter that is accurate, and also make your intentions clear. Use the hardship letter as evidence for the lender to accept your short sale, it can make or break your deal.

The physical letter is always better handwritten as long as it is legible. The top of the letter should have borrower name, date, lender and loan number. The length of the letter is not important, just as long as it has its desired impact. The letter should be blunt and honest and ask for forgiveness. This is not the place to complain, point fingers, or beg. It might start like this, “I regret having to write this letter, but unfortunately due to our financial hardship we are no longer able to pay on our mortgage. We ask that based on our current inability to make payments that you consider working with us to find a better solution with a short sale.”

The bulk of the letter is explaining to the lender why they cannot make their payments. Reasons to motivate the bank are, family death or illness, job loss or relocation, divorce, etc.
Finally, I will review the letter to make sure that details were not added that might hurt their case, or details omitted that would help