Ann Urias

RE/MAX Homes & Estates
Short Sale | Pre-Foreclosure Division

Inform yourself of all the possible options before you may or may not consider bankruptcy. The consultation is absolutely free and confidential.

Again, educate yourself of all of the possible pros and cons. Then you may choose the best options that will optimize your benefits for both you and your family.

My name is Ann and I'm here to help...

www.ReMaxAnn.com for more info

Your Credit in a Foreclosure vs. a Short Sale

Know that sellers will take a bigger hit on their credit report by going through foreclosure than going thru a Short Sale.

Of course paying you mortgage with a few late payments and modifying your loan is the best course of action, however that topic is for a different blog.
FICO score may sway towards the following:

Foreclosure
A hit of 200 to 300 points may occur within the 3 different credit bureaus. This means if a seller's FICO score before foreclosure was 720, it could dip lower than 300. The seller has to also consider the initial dings from the lates caused prior to the end of the foreclosure.

Short Sale
The affect of a short sale on a seller's credit report is much less damaging. The ding on credit will show up as settled less then amount owed, some sort redemption status, or a few other different ways. But the result in the loss is about 60 to 140 points. This means a short sale with a previous FICO of 720 will see it fall to 550 to 600.

Estimated Waiting Period Before Buying Another Home

Foreclosure
When the seller now becomes a buyer it will take about 60 months before a lender will offer a rate that you may consider. Of course at a purchase price of half of what you may have bought prior to this. But now with the constant daily guideline changes the lending industry is experiencing rates may not be economical for the buyer. Moreover, with the new restrictions of the guidelines the cure time and consequences may be worse.
"The presence of a foreclosure on your credit report probably will make it extremely difficult to obtain new credit at the best rates, especially if you also have problems with other credit accounts. A foreclosure remains on your credit report seven years to 10 yrs, so it will have a long-term effect on our creditworthiness. "Experian - Credit Bureau

Short Sale
The good news for short sale sellers is that the wait is much shorter before buying another home. Short sale will show up on your credit for approx 3 years and you can build your credit with ease. Make sure to keep paying all other debit on time. Re/Max Homes & Estates Short Sale Division

Brought to you by Ann Urias
(714) 588 7676

ORANGE COUNTY SHORT SALE REALTOR

www.ReMaxAnn.com

FACING FORECLOSURE PROBLEMS?


-Are You In a Default Situation?

-Are You Facing Back House Payments?

-Do You Need To Sell ASAP?

-Do You Have Little Or No Equity In Your Home?

-Do You Owe More Than Your Home Is Worth?

-Do you have a Notice of Default?

- Do You have a sale date ?


We Can Help You Avoid Foreclosure And Bankruptcy!!

Things Sometimes Can Go Very Wrong.
Losing Your Home To Foreclosure Isn't The Only Option You Have.
A "Short Sale" Could Be The Answer.

We Can Negotiate With Your Lender To Accept Less Than Your Payoff Amount Owed.
This Is Better Than Having A Foreclosure Or Bankruptcy On Your Credit History.

My team can help you.

www.remaxann.com for a list of all my short sale listings.

YOU'RE FACING FORECLOSURE! YOU'RE SHORT ON MONEY....

CAN'T REFI? NO EQUITY? NOT SURE WHAT TO DO?

I DO NOT WANT TO BUY YOUR HOME

I AM NOT AN INVESTOR

I AM NOT A LENDER

I AM NOT A BK LAWYER

BUT, I CAN HELP YOU

WE DO NOT CHARGE FOR ANY OF OUR SERVICES WE GET PAID BY YOUR LENDER

www.RemaxAnn.com

CALL ANN (714) 588-7676 or E-MAIL ME

What exactly is bankruptcy?

Bankruptcy is a federal court process designed to help people eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization."

Will filing for bankruptcy protect me from creditors' efforts to collect what I owe?

When you file bankruptcy, an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.

In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own.

What might I lose if I file for bankruptcy?

• You may be able to exempt up to $17,425 of your homes equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.(this is only an estimate and to please consult a local Bankruptcy Lawyer to discuss your individual situation)
• Insurance. You usually get to keep the cash value of your policies.
• Retirement plans. Pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected in bankruptcy. So are many other retirement benefits; often, however, IRAs and Keogh's are not.
• Personal property. You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to $1,000 or so. Most states let you keep a vehicle with more than $2,400 of equity. And many states give you a "wild card" amount of money -- often $1,000 or more - that you can apply toward any property.
• Public benefits. All public benefits, such as welfare, Social Security, and unemployment insurance, are fully protected.
• Tools used on your job. You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession.
• Wages. In most states, you can protect at least 75% of wages that you have earned but not yet received.

How Creditors Can Get Around the Automatic Stay

Usually, a creditor can get around the automatic stay by asking the bankruptcy court to remove ("lift") the stay, if it is not serving its intended purpose. For example, say you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property. The foreclosing creditor is apt to run to court soon after you file for bankruptcy, to ask for permission to proceed with the foreclosure - and that permission is likely to be granted.

Will bankruptcy stop a foreclosure?

Yes and No... A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound... it may help you at first but major surgery is still required.

The Bottom line is that Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone Else's hands. Your best option is for you to stay in control, and allow NLM work something out for your prior to filing.

Pros for filing Bankruptcy to Stop Foreclosure

• The Foreclosure proceedings will be temporarily suspended.

Cons for filing Bankruptcy to Stop Foreclosure

• There will be a bankruptcy on your record for 10 years.
• The Mortgage Company can work around the Bankruptcy and still Foreclose.
• You lose any leverage and control you once had.
• A deal must still be worked out with the Mortgage Company to repay the past due amount.
• If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure.
• NLM can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.

We are not attorneys and in no way are giving you legal advice. We are only attempting to explain how Bankruptcy may affect Foreclosure in our opinion. You must consult a local attorney to discuss your case as it concerns Bankruptcy.

Don't file Bankruptcy, Give us a chance first.

Go to www.nlmloanmod.com for all loan modification services.

If you are interested in a short sale go to www.remaxann.com for more info.