A few years back we purchased the KnowYourOptions.org domain and developed a website to help struggling San Diego North Valley homeowners to literally “know their options.” Our goal was to help our California neighbors to make informed decisions about homeownership.

Should you short sell? Foreclose? Get a loan mod?

It’s never an easy decision, but once you have all the facts (and the right counselor) that difficult decision becomes simpler. Fannie Mae recognizes this as well, which is why the organization purchased KnowYourOptions.org from us and redirected the site to KnowYourOptions.com™.

The new Fannie Mae site has the same intention that our original site had and continues to do an excellent job of informing the consumer how to stay in their home or how to leave their home. We fully endorse Fannie Mae’s current use of the site.

San Diego homeowners can certainly benefit. Here’s how.

• Find out if you have a Fannie Mae backed mortgage.

Fannie Mae backed loans could mean you have more options in dealing with your home loan. All this will be discussed when you meet with a housing counselor or broker, but it’s best to get as many of the facts as you can first. Use the Fannie Mae Loan Lookup form to find out for sure.

• View the local foreclosure prevention events calendar.

Find foreclosure education events in and around Southern California. These are in-person discussions that explain how foreclosure works and what you need to do.

• Watch videos from the video library.

You could search YouTube for hours to find the video with the information you need. KnowYourOptions.com has 20 videos covering short sales, died in lieu, forbearance, and more.

• Download the Fannie Mae financial documents checklist.

As you go through the process you’ll need to collect copies of documents to share with your mortgage company. Start now to prevent stress later. This checklist will help.

• Find your mortgage company.

The contact information of your mortgage company should be on your monthly statements, but you can also use Know Your Options and search the site for a web address and a phone number.

• Get the facts.

Read the frequently asked questions, learn the mortgage industry terminology, and know what it means to stay in your home or leave your home. WhatsMyOptions.com is also a great resource for this kind of information.

• Self-guided options finder.

By answering a few simple questions you can receive a personalized set of options.

What else would you like to know? Tell us what San Diego homeowners need.

There are several alternatives to short sales including loan modifications, refinances, and foreclosures, each of which could benefit the home owner. At San Diego Short Sales ASAP we look at each client’s situation and recommend what’s best for their particular situation, but most often, we provide short sale help, and here’s why.

A Fresh Start

A foreclosure may allow you to walk away from your current home, but you do so with a large mark on your credit history. On top of that, Fannie Mae won’t approve you for a new home loan for up to seven years.

In a short sale you might be facing the possibility of foreclosure, but you haven’t gotten there yet. The goal should be to get short sale help before you are 60+ days late on a payment.

Peace of Mind

Refinancing your current mortgage can help to reduce your interest rate and bring your payments to a more manageable level. Likewise, a loan modification can lower your interest rate, alter the term on your mortgage, and lower your monthly mortgage payments. These may be options that change your mortgage situation for the better and allow you to remain living in your home, but is that what you want?

The responsibility of home ownership is a stressful experience for some San Diego home owners. With short sale help you can walk away from your home and move into a financially comfortable housing situation.

Cash in Your Bank Account

You might not make any money on a short sale, but you could save money by paying rent or purchasing a less expensive home. If your current home mortgage doesn’t allow you save money, contact San Diego Short Sales ASAP to find out how we can help with a short sale.

All through October we are discussing short sales here at San Diego Short Sales ASAP; the timing with Halloween is no coincidence.  Muwahahahaha.

We understand many home owners are fearful of short sales, because on appearances the process is daunting. But the truth is that you just need to have the right set of tools and the right San Diego short sale specialist behind you.

To help alleviate your fears over short sales, we’ve created this “must do list” of things you need to do before you agree to a short sale.

1. Understand that you won’t be making any money on the short sale of your San Diego home. However, if you don’t have any late payments, then you will walk away from a short sale without damage to your credit.
2. Hire a home seller who can complete a comparable analysis and determine the value of your home. Your lender will require a professional analysis to confirm your home’s value has declined in the last five years.  (Our San Diego short sale specialist can help, just click here to find out how.)
3. Contact your home mortgage lender(s) to find out if they would consider you for a short sale and what documents and information is required.
4. Collect all the necessary documents the lender needs in a short sale package . If you can’t provide the necessary documents, your short sale will not be accepted. Cover that base before you get an offer.

5.  Be willing to set a reasonable selling price. Lower is not necessarily better in a short sale, even if you think it will help sell the house               quicker. Banks understand home values and the sales process; work with them, not against them.

Check back with San Diego Short Sales ASAP next week when we discuss how short sales compare to the alternatives.

The lender plays the starring role in a short sale, because they hold the ultimate decision-making authority. And before they’ll even consider your San Diego short sale, the lender will want one HUGE item . . .

Your short sale package. Is it good enough for the bank?

Lenders evaluate your hardship and the declining value of your home as presented in the short sale package, which will include a hardship letter, bank statements, repair estimates, and more. Many San Diego homeowners are overwhelmed by this process and become discouraged from a short sale because of it.

We’re here to tell you that you don’t need to be discouraged. Regardless of where you are in San Diego County, you should contact San Diego Short Sales ASAP and learn how we can help simplify the short sale package.

To get you started on the path of short sale clarity, let’s first talk about a few of the short sale package myths that the lender doesn’t bother clarifying.

1. Myth: You have to be in default.

It’s not necessary to be in foreclosure to qualify for a San Diego short sale. In fact, you can still pay on your home mortgage and qualify for a short sale.

2. Myth: Your credit is the primary consideration.

The lender looks at your overall hardship and the declining value of your home, not your history alone.

3.Myth: A short sale takes a year.

A short sale can be completed in two months, especially if your short sale package is accurate.

4. Myth: To do a short sale, you can only have one mortgage.

This will require more paperwork within your short sale package, and it will require some assistance from San Diego Short Sales ASAP to ensure the negotiations between all lenders is fair, but lenders still consider a short sale even if you have multiple mortgages or an equity line of credit.

San Diego Short Sales ASAP helps many San Diego home sellers navigate through these muddy waters, and we’re here to help you work with the lender. Contact us to learn more.

Six Reasons to Short Sale

Short sale transactions are a common method for buying and selling homes in San Diego County. For sellers in particular, a short sale could bring you the financial freedom you need to move forward in life. Here are six reasons why these San Diego short sale experts believe a short sale can help many home owners.

Many homeowners are underwater by no fault of their own

• A short sale allows you to start fresh without any damage to your credit. A short sale gives you peace of mind.
• Once your existing mortgage lender agrees to a short sale, you no longer have to worry about the fact that your house is undervalued, or priced less than what you paid. In a short sale, the bank takes the proceeds from the sale and writes off the amount remaining on your mortgage.
• If you are facing a financial hardship due to a job loss, illness, or family issues, a short sale allows you to alleviate some of that financial stress.
• Once the lender agrees to a short sale, the buyer negotiates the purchase price directly with the lender’s loss mitigation department. The lender handles most all of the paperwork, which means you don’t have to hassle with too much of the process, and what is required of you can be managed by our team San Diego short sale experts.
• Save time and your pride. Don’t go through a lengthy, and sometimes embarrassing, foreclosure.

If you do not have any 60+ day late fees on your home mortgage, Fannie Mae will still provide you a loan allowing you to purchase a new home sooner rather than later. Next time, you’ll be in a better position to make your payments and San Diego Short Sales ASAP can help you prepare.

Contact us to learn more about San Diego short sale and our San Diego short sale experts.

“Amherst Securities Group issued a report suggesting that programs designed to support short sales could be the most effective loss mitigation approach, as they minimize loss severity.  “In all cases, the loss severity on the short sale is 15-20% less than on the foreclosure sale,” Amherst researchers reported.  Amherst researchers also said the Hope-for-Homeowners (H4H) program is a “powerful alternative” to the Home Affordable Modification Program (HAMP).  Amherst researchers point to H4H’s ability to mimic the impact of short sales, such as a one-time loss on the loan, which provides a softer loss severity than foreclosure sales.

Borrowers completing the H4H program become re-equified and refinanced into a new Federal Housing Administration-insured mortgage, while HAMP provides capped incentives to servicers to modify mortgages in danger of foreclosure.  The US Treasury Department then adjusts the HAMP incentive caps based on the level of actual participation.  Plans for the “new and improved” H4H program could be released within the next two months, resolving enough issues to maximize the net present value of loans in bank portfolios but “unlikely” to be used for loans in private label securitizations, according to the report.”     2009 -11-09  Housingwire.com

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