Cameron Novak - Featured Short Sale Specialist

Eastvale Short Sales

As many Eastvale, Corona residents can attest, the number of foreclosure home sales in our community has had a devastating effect on home values. As a result of this value decline many Eastvale owners find it necessary to sell their homes, but find the value of their house isn't enough to pay off the mortgage owed to the lender.

The importance of working with a real estate broker with a track record of successfully assisting homeowners with short-pay situations cannot be stressed enough. The following is an absolute must when initiating negotiations with the bank for loan modification OR short-pay (or short sale) approval:

You must hire a real estate agent who knows how to contact the lender's loss mitigation department with your authorization and negotiate a favorable outcome of your short sale while at the same time guarding against the possibility of the lender pursuing you afterwards for a deficiency judgement. A deficiency judgement is the amount that was unpaid after the sale proceeds were completely exhausted. Do not contact the bank without the representation of an attorney or a real estate broker. Attorneys typically charge you for their services regardless of outcome. Top real estate brokers are able to negotiate their fees from the lender, while the home owner is relieved of paying any related real estate fees.

Bookmark this page and return frequently for updates for Eastvale, Corona real estate.

If you have an item of interest in the Eastvale, Corona neighborhood... email Eastvale@myagentgateway.com and I'll add any appropriate content to the site.

Cameron Novak
Eastvale Short Sale Specialist
The Homefinding Center^TM
Corona, California
951-212-7479

Chat About Eastvale Real Estate 24/7/365

Loan Modification Hardship Letter

As unfortunate as it is having to write about the subject of hardships, loan modifications, and short sales, I feel compelled to post an article to clarify the loan modification process and the importance of a well written, well thought out hardship letter.  As you may have guessed, you will also need a hardship letter should you attempt to get an authorization for a short sale.

Lenders currently have an outrageous number of loan modification and short sale requests.  They are literally stacked on asset managers' desks.  With this in mind, it is in your interest, when deciding what to put in a hardship letter, to put forth your best argument as to why you are a good candidate for a loan modification.  For the purpose of this article, loan modification may include interest rate reductions, interest only periods, increased loan term, decreased principal balance, removal or reduction in prepay penalties, or any combination of these items. 

There are many acceptable reasons the banks may consider a loan modification.  A few of the more acceptable reasons are below (If more than one of these apply to you, the better your position):

1. Income change (negatively impacting your ability to pay your bills)
2. Loss of Job
3. Death or Illness in the family, or affecting the family
4. An adjustment of your interest rate when your loan is an ARM (adjustable rate mortgage)
5. Divorce of principals on the loan
6. Relocation of homeowner (for an acceptable reason)
7. Increased financial burden (new unexpected debt, federal or state tax issue, law suit settlement, etc.)

Once you've decided that one or more of the above hardships apply to you (or other hardships as reasonably make sense), you'll need to craft an impeccable letter (if you need help on this, email me for individual assistance) logically spelling out your hardship, how you ended up where you are now, and why a loan modification will solve the problem. Understand that you will need to be able to reasonably back up the information you include in your hardship letter.  DO NOT include information in your letter which is absolutely false.  If you do, when the bank asks for confirmation of the information, you'll be in a pickle.  Don't place yourself in this situation.

You can also expect that the lender will require your financials (recent statements of income, expenses, etc.).  Each lender is different in this regard, but you must prepare for an extensive inquiry.

READY?  Get out the paper (or computer), write an outline of the letter (include topics you're going to expand on), then get specific about your hardship and how a loan modification will correct the problem and keep it from happening again.  If the bank doesn't see an end to the problems you're having, they'll be less likely to give you the attention you're requesting. Ideal length for your letter is between 1 full page up to about 1 1/2 pages... you definitely shouldn't go over the 2 pages in length.

ONE LAST ITEM: Don't ask for a loan modification if you obtained your loan by embellishing the facts on your application.  Your actions may implicate you in having committed loan fraud.
 

If you have an item of interest in the Corona area... email CoronaRealEstateNews@myagentgateway.comm and I'll add any appropriate content to the site.
 

Cameron Novak
The Homefinding Center^TM
Corona, California
951-212-7479

Chat About Corona Short Sales 24/7/365

Corona Short Sales and PMI disasters

Corona homeowners beware...

If you are a Corona homeowner and are considering a short sale solution to your negative equity position, you'll definitely need to know if you currently pay PMI (mortgage insurance). PMI companies are fast becoming thorns in the side of those negotiating with the banks towards selling their homes short (short pay or more commonly called... Short Sale).

If you have PMI, please let your agent know up front when explaining your situation so they will know how to proceed on your behalf. These companies can be dealt with during the short sale process, but they typically are looking for some type of seller concession. Make sure you have an agent who will agressively negotiate on your behalf with all parties involved.

Cameron Novak
Corona Short Sale Specialist
The Homefinding Center^TM
Corona, California
951-212-7479

Corona Short Sale Agent Profile