One of the services I offer to homeowners, investors and commercial borrowers is a full review of their current mortgage (sometimes known as an audit), if the mortgage is in foreclosure. I have had many instances when the borrower has been able to establish a defense or gain leverage to negotiate based on our findings. To date we have helped borrowers negotiate millions of dollars in reductions.
However, over time I've also become a big proponent of short sales if they can be successfully closed with a waiver of deficiency. Statistics show that on average a home sold through a short sale brings a 24 percent greater return to the lender than a foreclosure. While banks are offering incentives to homeowners and borrowers to short sale, in many cases this 24 percent can be a tool for negotiating more favorable terms for the borrower such as cash for keys or a waiver of deficiency.
Regardless of the decision you make to short sale the property or establish a foreclosure defense, it is imperative that you have a professional on your side. I have seen many foreclosure defenses botched by inexperienced attorneys and short sales fall through due to a lack of knowledge on the part of real estate agents and attorneys.
Due diligence is the key to putting a negative real estate experience behind you. Should you have any questions or need an introduction to a capable and knowledgeable real estate agent or attorney, please don't hesitate to contact me.
Suzanne Morton is a partner in Compleat Consulting Group, Inc. and is a respected consultant in the mortgage field working with over 50 law firms as an expert in foreclosure defense and compliance. Additionally, Suzanne is a Senior Loan Originator with The Mortgage Firm originating residential loans.
No comments:
Post a Comment