Foreclosure Alternatives

Mr. Myers is a licensed California attorney, a REALTOR®, and Certified Foreclosure Specialist.  He keeps current with the rapidly changing programs that are directed at keeping you in your home and saving you from foreclosure.  He is dedicated to providing professional consultation and finding the best solution for your situation, whether it is a short sale, a loan modification, refinancing, or turning your property over to your lender short of foreclosure.   

You should know that the government has implemented many programs to assist you in keeping your home or saving your credit.  Such programs include incentives and uniform guidelines for loan modifications, short sales and deeds-in-lieu of foreclosure.  We strongly urge you to visit http://www.makinghomeaffordable.gov/ for more details. 

Mr. Myers offers free consultations with no obligation.  At the end of the consultation, you will know your rights, your options, and will have an idea of the best solution for your specific situation. 

Loan Modification 

If you meet certain requirements, you may qualify for refinancing or a modification of your mortgage. Be aware that there are many individuals and companies that are getting into the loan modification business and requiring you to pay advanced fees.  Many of these offers are actually shams that are trying to cash in on your situation without really looking after your best interest.  If you choose to hire someone to assist you, be careful.  We recommend that you not hire anyone that demands any payment up front.   

If you hire Mr. Myers to assist you, he will only collect a modest fee if he is successful in modifying your loan.  The fee proposed by Mr. Myers is performance based and will be the difference between your pre-modified loan payment and your new modified payment, multiplied by two, capped at $4,000.00. 

For example, assume your monthly income has fallen to $10,000.00 per month but your mortgage payment is $5,000.00.  The goal of current incentives is for banks to modify loans so payments are 31% of household incomes.  Thus, it is possible that Mr. Myers may be successful in getting your mortgage payment reduced from $5,000.00 to $3,100.00, a savings of $1,900.  In this situation, your fees will be $3,800.00. 

Forbearance or Reinstatement 

If you are about to fall behind or are behind in your payments, you may be able to enter into a forbearance agreement with your lender(s) where the lender(s) agrees to allow you to go a specified period of time without making any payments.  This is a short-term fix.  Often, you will be required to make up the payments at some point in the future.  Forbearance is a good option if you know you will be coming into some money soon and will be able to make up your payments and resume making your normal payments.  However, you must be very careful when entering into a forbearance agreement.  BEWARE: Many lender(s) include language in the forbearance agreement that allows them to sell your home via a trustee sale without any notice to you if you default, which could result in you losing your home with little or no recourse and without your knowledge until you receive an eviction notice. 

If you are in default on your mortgage(s) and are facing foreclosure, you should know that you have a legal right in California to reinstate your loan and stop foreclosure up to five days before any trustee sale.  This option can be costly in that it requires you to pay not only your late payments, but all penalties as well.  Your lender(s) cannot refuse reinstatement. 

If this is a best option for you, then Mr. Myers can assist you.  However, these are legal services and he will not be providing such services as a TIMELINE representative.  Therefore, you will need to enter into a separate contract for legal services with him to accomplish your goals.

Short Sale 

A ?short sale? occurs when the lender(s) agrees to allow you to sell your home for less than the balance owed on the loan.  Lender(s) do not want to foreclose on properties and generally prefer to work out some other solution if possible.  Reasons for their motivation, in part, are that they know that a foreclosed property, or Real Estate Owned (?REO?) property, generally sells for less and increases their exposure to liability. 

The government has recently enacted many incentives for lenders to allow a short sale and have enacted uniform guidelines to make the process quicker.  These incentives include $1,000.00 to loan servicers for successful completion of a short sale, $1,500.00 for you to help with relocation expenses, and up to $1,000.00 toward paying junior lien holders (your secondary mortgages) to release their liens. 

If short selling your home is the best option, Mr. Myers can and will contact your lenders on your behalf to seek their approval for a short sale.  Upon approval, Mr. Myers will list your home and work hard to sell your home as quickly as possible. 

There are no fees for which you will be responsible for Mr. Myers? services as they are paid by the lender(s) from the sale proceeds.   

Deeds-in-Lieu of Foreclosure 

Another option as a foreclosure alternative is the ?deed-in-lieu? of foreclosure.  Under this option, you simply sign your deed over to your lender and walk away without a foreclosure on your record.  Your property will then become a REO and sold accordingly.  The incentives listed above for short sales also apply to the deed-in-lieu option. 

A deed-in-lieu of foreclosure is the quickest method to stop the pain if you qualify.  When negotiating with your lender(s) for a short sale, Mr. Myers will also argue that they consider a deed-in-lieu.  There is no additional fee for this service.