Avoid Foreclosure

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Short Sale Secret Revealed
 

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Read the following articles:

The Hows and Whys of the Housing Crisis, Sept 2008

Short Sales:  7 Legal Pitfalls, Apr 2009

Short Sale Precautions, 2009

Appraiser Checklists, Apr 2009

Liability for Short Sale Deficiency, Apr 2009

CNN Article on Short Sales, Mar 2010

Short Sale, The New Wild West

Short Sale, Fiduciary Responsibility

Short Sale, No Duty to Submit ALL Offers

Foreclosure Guidelines

Home Affordable Foreclosure Program

Tax Articles:

Mortgage Debt Relief Act of 2007, May 2009

Discharge of Debt Under Section 108 of the IRC

Foreclosures, Tax Implication, Jun 2009

IRS Form 1099-C and 982

Prevent foreclosure! Help on short sale to avoid foreclosure is now available nationwide; although this was previously available only if you are located in Berks County, Chester County, Delaware County, Philadelphia, Drexel Hill, Haverford, Havertown and Upper Darby, Pennsylvania as well as Brigantine, Atlantic City, Ocean City, Camden County and Gloucester County, New Jersey. Call for information regarding availability of service in your area.

Foreclosure is a legal process that allows a lender to take possession of a property for non-payment of a loan that is secured by that property.  When a property is in pre-foreclosure, the owner still has a chance to stop the foreclosure process by paying the entire balance that is owed or by selling the property.  This will include "short-sale" as explained below.

After a property owner misses several mortgage payments, the owner has a pre-foreclosure period of few weeks to few months to bring the payments current and to stop any foreclosure proceedings.  If the owner does not bring the delinquent payments up to date during this period, the property will be sold at a public auction.  This entire process can last several months.

The lender would usually repossess or take ownership of the property either through an agreement with the owner during pre-foreclosure period or at the public auction. The lender usually sells the property to recover the unpaid loan amount.

After repossession, the property becomes a so-called REO, meaning Real Estate Owned [by the lender]. It's another way to say the property has already gone through the foreclosure process, and has now been repossessed by the lender.  Lenders often want to get REOs off their books quickly.  However, there is usually a "redemption period" for the owner to buy-back the property after it is repossessed by the lender, and the lender will typically wait the end of any redemption period to sell the property.  During this entire period (from pre-foreclosure to REO sale by lender), the owner and the lender receive phone calls from people (or investors) who are interested in buying the property.  They try to arrange a meeting to discuss a possible sale and to preview the property.

Danny Cachuela is not in the business of buying these properties (also known as distressed properties), and he is not offering to buy properties that are in the process of being foreclosed.  Instead, Danny Cachuela is in the business of helping homeowners avoid foreclosure through short sale.

The book, Short Sale, A Practical Approach is now available at Amazon.com.  It will show you in greater detail what it takes for lender to approve a short sale transaction.  It covers information about the patience required in dealing with the lender, and how to successfully negotiate a short sale by understanding the process.  Here's more information on this book.

How can Danny Cachuela help avoid foreclosure?

A property in a pre-foreclosure status is not necessarily for sale.  The owner may be pursuing other options to cure the default, which could include re-financing of the loan.  However, an offer from a financially-qualified buyer may be the best solution to get the owner out from under the impending foreclosure.

Danny Cachuela can help you avoid foreclosure in the following ways:

1. You will receive assistance in preparing a Personal Financial Statement, and its analysis to establish your financial difficulty, or to determine eligibility for short sale.

2. You will receive assistance in preparing a letter to the lender to give you some time as you are pursuing other alternatives, which could include short sale or loss mitigation.

3. We will help you sell your home as a normal sale, unless a “short-sale” is necessary.  A short-sale is a sale of your property for a price where your net proceeds from the sale would be less than the amount you would need to payoff your loan.  In this situation, we will negotiate with your lender for them to accept settlement of your loan for less than the payoff amount (also known as short payoff).  This is sometimes necessary to avoid foreclosure and frequently the case in a “down” market. 

4. We will prepare for you a Net Sheet to be presented to your Lender.  This will estimate the net proceeds that the lender will receive at settlement in "full satisfaction" of your mortgage loan.

5. If there is an IRS lien on your property due to non-payment of taxes, Danny Cachuela may even be able to help you in obtaining a Certificate of Discharge from the federal government.

6. Debt forgiven by lender is generally taxable as a so-called forgiveness of debt income. However, you may qualify for exemption under the Mortgage Forgiveness Debt Relief Act of 2007 (see link to Tax Articles above). If you don't qualify under this act, check with your accountant about qualification for exemption under Section 108 of the Internal Revenue Code (see link to Tax Articles above) if you are insolvent at the time of sale.

Again, our business is to provide you assistance to avoid foreclosure of your property.  Don't be deceived by those who try to get your business through the Internet, then refers your case to be handled by unqualified agents.  Danny Cachuela, with his financial background, is uniquely qualified to provide this service.  We are not the so-called "phony counseling agency."  We do not charge a fee for counseling.  We collect our fee in form of commission from the sale of your house, just like a traditional sale by a Realtor.  That means... no sale, no fee.  In this case, the net effect is that your lender is the one paying our fee.

Choosing your Agent wisely. Any agent will show enthusiasm and will want to list your house for sale but choose your agent based upon:

1. Experience at listing and marketing houses for sale.

2. Ability to use technology to market your house world wide to buyers 24/7.

3. Reviewing with you a comprehensive Marketing Analysis of home sales in your area.

4. Ability to offer a written detailed MARKETING PLAN that will get your house sold at the highest possible price.

Working with a full-time professional real estate agent is a must.  Choose your agent by asking questions of him or her.  Find out how knowledgeable they are about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates to assist your new buyer with financing?  A good listing agent can get your house sold quickly at TOP DOLLAR and help you find a new home.

To receive your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
 

Last modified:  08/22/2010