San Diego Owner Solutions For Underwater Mortgages

If you need help,  I  am providing a free individual analysis to determine if a home owner qualifies for or can benefit from the following Federal Programs:

  • New HARP 2 (Home Affordable Refinance Program 2) – For Home owners who want to refinance but have been unable to because their mortgage balance is higher than the homes current fair market value. In most cases NO appraised value is required!
  • HAMP (Home Affordable Modification Program) – For home owners who qualify to permanently lower their monthly mortgage payment because of financial hardship.
  • HAFA (Home Affordable Foreclosure Alternative) – Provides the home owner with “Move-Out-Assistance” in the amount of $3,000  (Payable at close of escrow) when short sale (selling) their home. A short sale is when the the property is sold at a loss and there are no net proceeds to the seller from the sale of property.  We do not charge any selling fees to sell the property.

A professional service provided by Frans VanLeeuwen, helping friends and clients for over 30 years.

If you read my last blog I listed what you need to know about short sales. As you may know, a short sale is the best way to liquidate a property that is underwater. Short sale means your loan balance is higher than the current market value of the house and its “short” of paying off the balance and the loss is absorbed usually by the lender. A “strategic default” is where the borrower can afford the mortgage payment on an underwater loan in relation to to the current lower value of the property and decides to stop making the monthly mortgage payment, in a sense cut his losses, with the intent of short selling the property. In California, the mortgage is called a trust deed which usually has an acceleration clause. The clause states if you miss a mortgage payment the lender, at its option, can start the process of foreclosure starting with a Notice of Default (NOD), and eventually accelerate the note for full payment or foreclose.

The strategy is for the borrower’s home to be sold on a short sale acceptable to the lender before the property is foreclosed upon, where title reverts to the lender. Therefore, it is imperative you find the right team to handle your short sale (proper packaging) and sale of the home. Interestingly enough, back in late 2006, one of the earliest strategic defaults I did for short sale was on a vacation property. The borrowers easily afforded the monthly payment but were unhappy with the significant drop in value of their home and wanted out due to extenuating circumstances. However, the borrower still has to qualify with their lender to be approved for a short sale. It is ironic because I began my career originating and packaging borrowers loan applications, to get them approved so they can get in to their home. I guess I have come full circle, as I package borrowers on short sales to get them approved to get out of their home loan. The fancy term is called “release of loan liability” evidenced by the lenders short sale approval letter and of course the final HUD 1 closing statement to be used for tax return purposes.

If interested and see if you qualify for a strategic default please contact by email or just call me. 858—492-9262. I am happy to help. There is no charge for this service.

Contact me for more information.

Leave a Reply

Your email address will not be published. Required fields are marked *