Category: Foreclosure

Whether you’re a buyer or a borrower / seller, a short sale and foreclosure each present different advantages and difficulties. We break down what you need to know in each case. What Is A Foreclosure? According to Redfin, “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home.”  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you.   A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.   A foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website. What Is A Short Sale? In a short sale, the home is still owned by the borrower.   The definition of a short sale is… “A sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt” (source: Wikipedia).   In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.   This option typically takes some time, as a few different lending institutions may own the mortgage. Each lender has different procedures as well. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree. Lenders do not typically approve a short sale unless the homeowner is experiencing some financial distress.   Short Sale vs. Foreclosure – Your Options The main difference between the two is whether or not the home has equity. A foreclosure can happen no matter what the mortgage balance is (compared to the home’s value), a short sale happens when the lender cannot recuperate their funds from a normal sale.   While both options can have ramifications, a short sale often has less of an impact on the borrowers creditworthiness.   Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase again sooner.   Choosing between foreclosure and a short sale (or a 3rd option…  selling your house fast ) is an easy choice for a borrower having trouble paying a mortgage on time.   Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time consuming process of conducting a foreclosure.   Our suggestion is always this.   Talk with your lender and discuss ways that they can work with you on your loan. We offer free consultation where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our contact page and we’ll discuss your situation. Attempt a short sale or other modification program your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like Skye Homes to sell your house fast for an all-cash offer. If you’re interested, we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form below. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished. We highly advise to NOT sit around and let the bank take your home. By knowing your options, you may be able to dodge a significant impact to your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.   Have a pending foreclosure?  We’d like to make you a fair all-cash offer on your house.   Give us a call anytime at or fill out the form on this website today! >>

Understanding the foreclosure process in California is important if you find yourself having trouble making mortgage payments. We give you some background on foreclosures and what to do if you find yourself in this situation.   What is foreclosure anyway? Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.   Foreclosure is no fun.  But just know that it’s not the end of the world.   When you know how foreclosure in California works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible. The Basic Stages of A Foreclosure There’s a few stages that are important to any foreclosure process.   Foreclosure works differently in different states around the country.   The two ways different states use to foreclose upon a property are: judicial (in court) or non-judicial (out of court). California is a non-judicial state, although judicial foreclosures are allowed (but not common).   In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.   Under Non-Judicial Foreclosure:   The mortgage lender serves you with papers demanding payment, called a Notice of Default (NOD) and the courts are not required – although the process may be subject to judicial review. This is the “pre-foreclosure” period. The NOD is mailed to you and all interested parties. Three months after the NOD is filed, a bank can file a sale date, which is done through a trustee (the sale is called a trustee sale). You have until 5 days before the sale date to remedy all past due balances and accrued costs for the bank’s filings. If the default is not remedied, the trustee can then sell your property for the lender at a public auction (notice must be given).   Anyone who has an interest in the property must be notified during either type of foreclosure. For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.   What Happens After A Foreclosure Auction? After a foreclosure is complete, the loan amount is paid off with the sale proceeds.   Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.   A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.   Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.   Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.   Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate investment company like Skye Homes to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.   Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.   If you need to sell a property in the Bay Area, we can help you.   We buy houses in the Bay Area like yours from people who need to sell fast.   Give us a call anytime or fill out the form on this website today! >>

If you’re underwater on your home, or having trouble keeping up with your monthly mortgage payments, you could be fearful that your mortgage provider is going to foreclose. Thankfully, there are a number of things that you can do to avoid foreclosure in the Bay Area. It’s important to remember that moving quickly is absolutely paramount, and could save your credit rating and your home. So lets dive in on a couple quick tips on possibly how to avoid foreclosure in the Bay Area with your home.   The Keys of How To Avoid Foreclosure: Don’t Abandon Ship Inability to pay the mortgage is a stressful situation, but it’s extremely important to keep your wits about you. A foreclosure will have a huge negative impact on your credit score, and likely prevent you from purchasing a home for years to come. If you sell your home, you could leave a portion of the loan unpaid, and the lender could pursue legal action against your for the unpaid portion.   While it’s extremely stressful, you do have options:   • Negotiate with your mortgage lender. Banks and other financial institutions are well aware that homeowners are struggling. If you haven’t missed a payment yet, you may have some leverage to renegotiate the terms of your loan. Banks don’t like foreclosing on homes, and many will work with you if you aren’t too far behind. You may be offered forbearance, or even a full loan modification.   • Ask for help from Uncle Sam. Over the last five years, the federal government has implemented a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows struggling homeowners to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments refinance an adjustable rate mortgage into a low-interest, fixed rate loan. Both of these programs are subject to eligibility requirements.   We understand that the possibility of losing your home can be stressful. You aren’t alone. Citizens all over the Bay Area are going through the same troubles. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.   We may be able to help you avoid foreclosure… connect with us today and lets discuss your situation. We don’t charge any fees… we’ll evaluate your situation… and present you your options so you can move forward and get this foreclosure behind you.   Give us a call anytime at or fill out the form on this website today! >>

With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process. So what is a pre-foreclosure in anyway? Many homeowners across America and the Bay Area are facing difficulties making their monthly mortgage payments. When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.” Banks and mortgage lenders typically provide three months for the homeowner to become current.  Of course this number can vary by bank and situation sometimes.   If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.   Pre-foreclosure Options for Borrowers If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender. This document will state that you have not made mortgage payments for the last 90-180 days. It’s important not to panic. You have options that can delay or even prevent losing your home: If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments.  Check with your local the Bay Area mortgage broker… or contact us and we can connect you with a reputable one. You may be able to quickly sell your home to a real estate investor that’s reputable in the Bay Area like us at Skye Homes, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your the Bay Area California area home quickly, often in just a week or two, will pay cash, and takes the stress out of trying to find a buyer. You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off.  In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan. You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage. Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time.   If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating.   A foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.   But if you’re not able to find a solution with your lender working directly with them… connect with us. We may be able to help.   Ways We Can Help If You’re In Pre-Foreclosure We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help. We can help you with a loan modification– this is a service we provide through our partner network. We can buy your the Bay Area area house – We buy houses in the Bay Area and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >> You can ask us questions and we can provide you FREE guidance and resources so you can make a well-educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch. If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.   Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources. Want To Discuss Your Pre-Foreclosure Options? Call Us at Or, Submit Your Info Here To Get A Cash Offer On Your House >>

When you fall behind on the mortgage payment, it can feel like you’re drowning in debt. Likely, it is caused by another life issue such as job loss, divorce, or medical bills. One problem has led to another. There are a few options that can help you to avoid foreclosure and maybe even keep your house – even if you’re seriously behind in payments.         1. Making Home Affordable (MFA): If your mortgage qualifies, you might be able to participate in MHA. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MFA.   With MFA, your payments and/or interest rates might be lowered – even the principal balance (if your home is worth less than you owe). If you’re unemployed, you might be able to get your payments temporarily suspended or reduced.   MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it. There are also some restrictions, such as not being greater than 60 days past due.   2. Negotiate with your bank: Lots of lenders routinely offer some level of assistance. You have to work hard at it, but you might be able to get your interest rate reduced, or a temporary reduction in your payment.   Most of the time, lenders will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.   You have to work really hard to negotiate with a bank. Usually it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever be rude. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term.   If you’re in need of a temporary fix and want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments back onto the primary balance of your loan. It’s all dollars and cents to them, so remind them that you need their help to give them a lot more money in the long run. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.   That sounds obvious, but for some reason bankers seem to forget it when saying no to someone in need of help. We can also help guide you through the process and take on a negotiator role for you. Call us for more information about this service. TIP: do not pay anyone up front for help with this!   3. Borrow money from a private investor or relative: If you have a relative that might be interested in helping, chances are you’ve reached out to them. If not, here is a creative way to get past the awkwardness or pride that may be standing in the way. Offer to have them become part owner in the home in exchange for helping you get the mortgage current. This works best if your repayment issue is temporary. If there is no resolution in sight, it’s probably not worth it to them.   You would need to discuss if they will be entitled to half of your equity, or a different amount. Decide what their help and money is worth in relation to your equity. Create a promissory note (via attorney or google), and ask a title company to help you record the changes to the property.   If you’re behind in your payments and need to sell fast, we can help. In certain circumstances, we may even be able to help you stay in your home.   We work with homeowners in to find solutions to foreclosure problems. We’ll let you know how we can help.   4. Bankruptcy: This is usually the tool of last resort. If you’re behind on the mortgage payment or being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.   Give us a call now at or fill out the form on this website to get started.