The Real Estate Blog

Avoid Foreclosure & Bankruptcy, Save your Credit, & Walk Away with No debt  & NO Fees

If you owe more on your home than it is worth and you are having a hard time making your mortgage payments, it may be time to short sell. I can sell your home and negotiate the best outcome for you regardless what lender you have and how close you are to foreclosure. I have connections to the top negotiators with all the lenders to give your file the attention you deserve and save your credit from foreclosure or bankruptcy.

IS THIS MY DREAM HOME? If this is your dream home then maybe a modification will benefit you, but consider, a modification only temporarily lowers your interest rate but does not reduce the principle. 95% of modifications end up in foreclosure.

HOW DO I GET A FRESH START? First you need to get rid of the 800 ton gorilla (your mortgage). By doing a short sale your can reduce the impact on your credit and get back into home ownership in as little as 18-24 months.

HOW MUCH IS A SHORT SALE GOING TO COST?  You pay absolutely nothing, no commissions, no closing costs, no back taxes and no repairs.

HOW LONG WILL THIS BE ON MY CREDIT?  A short sale will typically show on your credit for up to 24 months, a foreclosure 5-7 years and bankruptcy is 11 years PLUS!

WILL THE LENDER COME AFTER ME FOR MORE MONEY? If you have not taken any equity out of your property the answer is NO. If you have pulled equity out of your property the lender MAY pursue a deficiency judgement. However, we often negotiate a reduced payment and sometimes at 0% interest.

WHAT LENDERS HAVE YOU WORKED SHORT SALES WITH?  We have build strong and reputable relationships with Aurora, American Servicing Co.,Bank of America, Countrywide, Citi, SPS, First Franklin, Indymac, National City, Wilshire, Wells Fargo & Washington Mutual.

WHY THE ROZANSKYTEAM? Traditional Realtors do not have the lender relationships that we have, my concern is the outcome on your credit and to reduce any possible deficiency amount. I will give you the personal attention and respect you deserve, you are my client and I have a fiduciary responsibility to you.  My goal is to get you qualified for home ownership again so your next home is more affordable.

 Avoid Foreclosure, Save Credit, Walk Away w/ No Debt, No Fees

The Short Payoff Refinance

by The Rozansky Team

jon@rozanskyteam.com (619) 392-1234

Finally!!! You can do a Short Payoff Refinance loan with our standard FHA Loan Programs.

Although the "Short Sale" has become a well known solution for borrowers to avoid foreclosure by selling their home for less than what is owed, the "Short Payoff Refinance" (Short-Pay Refi) is becoming a popular tool for borrowers to retain their home, lower their principle balance and most importantly; lower your monthly payment with a fixed rate FHA insured loan.

~~~What's a Short Pay Refinance?

This process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. A Short  Pay Refi is unique in that it allows the borrowers to keep their home, lower their payments and eliminate the upside down equity in their homes by reducing their principal balance.

The transaction itself is a basically a three part process. Negotiations are done by us the broker in conjunction with the borrower and the lien holder. First we need to establish the actual current value of the home. Next, we run the FHA approval on you at the maximum loan to value for that new value and issue an approval. Now, armed with our comps at current market value and our approval, WE enter into equity re-negotiations with the bank/loan servicer for a discount on the current mortgage. Once the bank/loan servicer accepts the offer presented, we can complete the new loan transaction.

THIS IS NOT THE H.O.P.E FOR HOME OWNERS PROGRAM AND DOES NOT CARRY ANY OF THOSE RESTRICTIONS**

~~~Who should get a Short-Payoff Refinance?

For those borrowers that still have decent credit, ficos, income and no mortgage late but due to a decline in the value of their home (owing more than it's worth), a Short-Pay Refi is the perfect solution. This allows the borrowers to put the brakes on before everything gets away from them and spins out of control. After the transaction is complete and the lien holder is paid off, it's up to that lien holder as to how they are going to rate the paid-off mortgage to the credit bureaus. Depending on the lender, it may be filed as: Paid In Full, Settled, Charged-off, Paid for Less than Balance, etc.

~~~Why would the bank/loan servicer agree to a Short-Payoff Refinance and not just foreclose on the property?

Banks/Loan Servicers' books are becoming swamped with REO's, so now they're more open to negotiations than ever.  Remember, foreclosing on a property requires large amounts of realtor commissions, legal fees and then the home is typically sold at a substantial discount off of the fair market value by the bank. The Short-Payoff Refinance allows the loan servicer to avoid a majority of the legal fees, commissions, home maintenance and lets the new lender make its largest loan based on the fair market value. In most cases, a Loan Modification can't solve the problem as many loan servicers are not lenders; a Short-Pay Refi becomes a very powerful alternative. Short-Payoff Refinances put borrowers in better positions than standard loan modifications because aside from lowering the payment, they also lower the principle balance with an FHA insured loan.

 I HAVE NO UPFRONT FEES!!!  I GET PAID WHEN YOUR LOAN IS MODIFIED OR YOU PAY NOTHING!

The Short Payoff Refinance

by The Rozansky Team

jon@rozanskyteam.com (619) 392-1234

Finally!!! You can do a Short Payoff Refinance loan with our standard FHA Loan Programs.

Yes we are doing them and lenders are approving the refinance! They want you to stay in your home!

Ask to see our most recent Short Pay Refinance & Principle Reduction approval!

Although the "Short Sale" has become a well known solution for borrowers to avoid foreclosure by selling their home for less than what is owe, the “Short Payoff Refinance” (Short-Pay Refi) is becoming a popular tool for borrowers to retain their home, lower their principle balance and most importantly; lower your monthly payment with a fixed rate FHA insured loan.

~~~What’s a Short-Payoff Refinance?

This process is similar to a short sale but, instead of the property being sold, it is refinanced with the same or a new lender. A Short-Pay Refi is unique in that it allows the borrowers to keep their home, lower their payments and eliminate the upside down equity in their homes by reducing their principal balance (principle reduction).

The transaction itself is a basically a three part process. Negotiations are done by us the broker in conjunction with the borrower and the lien holder. First we need to establish the actual current value of the home. Next, we run the FHA approval on you at the maximum loan to value for that new value and issue an approval. Now, armed with our comps at current market value and our approval, WE enter into equity re-negotiations with the bank/loan servicer for a discount on the current mortgage. Once the bank/loan servicer accepts the offer presented, we can complete the new loan transaction.

THIS IS NOT THE H.O.P.E FOR HOME OWNERS PROGRAM AND DOES NOT CARRY ANY OF THOSE RESTRICTIONS**

~~~Who should get a Short-Payoff Refinance?

For those borrowers that still have decent credit, ficos, income and no mortgage late but due to a decline in the value of their home (owing more than it’s worth), a Short-Pay Refi is the perfect solution. This allows the borrowers to put the brakes on before everything gets away from them and spins out of control. After the transaction is complete and the lien holder is paid off, it’s up to that lien holder as to how they are going to rate the paid-off mortgage to the credit bureaus. Depending on the lender, it may be filed as: Paid In Full, Settled, Charged-off, Paid for Less than Balance, etc.

~~~Why would the bank/loan servicer agree to a Short-Payoff Refinance and not just foreclose on the property?

Banks/Loan Servicers’ books are becoming swamped with REO’s, so now they’re more open to negotiations than ever. Remember, foreclosing on a property requires large amounts of legal fees and then the home is typically sold at a substantial discount off of the fair market value by the bank. The Short-Payoff Refinance allows the loan servicer to avoid a majority of the legal fees and lets the new lender make its largest loan based on the fair market value. In most cases, a Loan Modification can’t solve the problem as many loan servicers are not lenders; a Short-Pay Refi becomes a very powerful alternative. Short-Payoff Refinances put borrowers in better positions than standard loan modifications because aside from lowering the payment, they also lower the principle balance with an FHA insured loan.

CA DRE # 01807122

I have been negotiating with lenders on short sales, loan modifications, short pay refianances.   In all cases you should always consider these options rather than foreclose.  Ask me about your situation and I will give you good honest advice.  I never charge ANY upfront fees ~ Jon 619-392-1234

How Will A Short Sale Affect My Credit?

A short sale will negatively affect your credit, but not nearly as much as a foreclosure or deed-in-lieu~ read this entire article for details on each alternative.

A short sale simply means that the amount of the mortgage balance owed is greater than the current market value of your home. Homeowners who are in financial difficulties and facing foreclosure often opt for a short sale in order to escape the foreclosure process.

This is precisely the situation now across the United States where the sub prime adjustable rate mortgage mess has caused mass foreclosures and significantly reduced the value of real estate.

A short sale takes place when the lender agrees to accept less than the amount you owe him on your mortgage because you don’t have enough equity to sell the home and pay all the costs of the sale. And make no mistake, the lender must agree or you’re out of luck.

The effect on your credit report

You will suffer much more damage to your credit report with a foreclosure than you will with a short sale. It will also take considerably longer to restore your credit rating once your financial difficulties are resolved. In general, here’s what happens:

For a Foreclosure or Deed-In-Lieu of Foreclosure

- Expect about the same things to take place. Quite often this means a loss of between 200-280 points on your FICO score. A pre-foreclosure FICO of 675 could drop to as low as 395, essentially eliminating you from future credit approvals. It may be as long as three years before you can qualify for another home loan.

For a Short Sale

- Expect to suffer some credit score damage, but nowhere near as much. Loss of FICO points will be around 75-125 and your report will show it listed as a ‘pre-foreclosure in redemption’ which is far less negative. You will most probably be able to secure a new home loan in about a year and a half. In any case, it is a good idea to consult with a lawyer, tax accountant (CPA) or a good real estate agent who is experienced with successful short sale negotiations. These professional may charge you a bit for their services, but failing to have the right counsel could end up costing you a sizable bundle. So don’t consider going it alone. Get the help you need.

Call the Rozansky Team to discuss your options, Jon ~ 619-392-1234 www.rozanskyteam.com