Frequently Asked Questions

What is a short sale?
What is a foreclosure?
What is loss mitigation?
Can the bank just come and kick me out of my house?
Can you explain some of the steps of the foreclosure process?
I am receiving a lot of mail from people that claim they can help me where are they getting my address?
How long does the foreclosure process usually take?

What is a Short Sale?

A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
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What is a Foreclosure?

In simple terms: When the owner has not been making the payments it is the action the financial institution can use to take the house back. The owner borrowed money using the house as collateral with the agreement that if they could not pay it back, then the lender could take the house.
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What is Loss Mitigation?

Loss mitigation is the process of trying to stop a home foreclosure before it occurs. Loss mitigation was introduced as a collaborative effort between the federal government and the mortgage industry. The program was established to help home owners that were facing the loss of their homes due to delinquent payments. A professional loss mitigation counselor will work with the home owner as well as the lender to find an alternative to foreclosure.

Loss mitigation is about keeping the home owner in their home. When that is not a realistic outcome, every attempt is made to help the home owner get the most for their home as they possibly can before a foreclosure sale takes place. This may include a short sale if a qualified purchaser can be found.
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Can the bank just come and kick me out of my house?

No. Sometimes people are told by collectors, “Just leave the keys in the mailbox”. You still have time until the sale has occurred, and the house is no longer yours.
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Can you explain some of the steps of the Foreclosure process?

Each state is slightly different, but a basic overview is as follows:

Pre-Foreclosure:

1. Customer misses mortgage payment.
2. Late notice sent to homeowner by bank.
3. Customer misses additional payments.
4. Bank attempts in writing and by phone to contact homeowner and resolve situation.
5. No arrangements are agreed upon and homeowner continues to miss payments.
6. Bank issues demand for payment under the note in full, based on the acceleration clause. Most mortgage notes contain language which basically says if you fail to pay the bank under the terms of the note with monthly payments as promised they can accelerate the note, meaning that the full amount is due on demand. For example, if your mortgage is $100,000 with payments of $1,000 per month, you are only required to pay $1,000 per month unless you miss these payments and the bank subsequently demands the balance based on this acceleration. Once this happens you legally owe the full balance of $100,000 plus back interest, plus late charges, plus legal fres all at once. You will find from this stage on the bank will not accept monthly payments. They will instead demand much more to reinstate the loan. Although I consider this step in the pre-foreclosure category, once demand has been made and the note has been accelerated, you should already have contacted a foreclosure specialist, whom is an expert in dealing with these matters.
7. No payments or settlement arrangements are made and accepted by the bank.

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I am receiving a lot of mail from people that claim they can help me where are they getting my address?

Due to the legal nature of the foreclosure process, your name and address may be part of public information offered through the court system and ultimately published in certain journals and publications.
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How long does the foreclosure process usually take?

From the time you miss your first payment to the final foreclosure sale, it is not uncommon for 5 months or more to pass.  In some states this could be more and in others considerably less.  It will also depend upon your mortgage holder and how aggressively they pursue your case.
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How long does the foreclosure process usually take?

From the time you miss your first payment to the final foreclosure sale, it is not uncommon for 5 months or more to pass. In some states this could be more and in others considerably less. It will also depend upon your mortgage holder and how aggressively they pursue your case.
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