SoCal Superior Properties can only offer real estate advice. Legal & Tax advice does not apply
You must report an abandoned or acquired secured asset
Possible Riskes of Banks reporting the entire loan amount of an abondoned property on:
Non-Government & income producing Loans
Reduce your deficiency risk and sell your home before you abandon
Discounts for: For Sale By Owners & Investors!
FORECLOSURE DEFENSE BASICS: UNDERSTANDING THE HOME AFFORDABLE FORECLOSURE ALTERNATIVES PROGRAM (HAFA), SHORT SALES, DEED IN LIEU OF FORECLOSURE AND DEFICIENCY JUDGMENTS
So many homeowners are fighting for reasonable loan modifications that will save their homes from foreclosure. Other people are seeking refuge in a bankruptcy Court (Chapter 13 Bankruptcy, and Chapter 7 Bankruptcy). Still others are seeking a Deed-lieu-of-foreclosure strategy, while other homeowners who are completely upside down on their properties are either walking away, or seeking to short sale their property. This is the current state of affairs in the United States, and banks (who have been generously bailed out) are picking and choosing who gets what. It seems like if you want the bank to perform any loss mitigation for Arizona of California homeowners, you have to basically incentivize them to do something (e. HAMP – Making Home Affordable).
This new loss mitigation program is called HAFA – Home Affordable Foreclosure Alternatives Program. HAFA supplements HAMP. Servicers implementing HAMP must also comply with the HAFA directives and consider people for short sales and deed in lieu of foreclosure.
What is a short sale? A short sale is a transaction whereby a lender agrees to accept less as a payoff than is owed by the homeowner/borrower by allowing the property securing the debt to be sold for less than the lender is owed. In some cases the lender will forgive the outstanding debt owed and in other cases the lender may want an agreement from the borrower to pay the deficient loan balance.
What is a deed-in-lieu? This is basically where a homeowner/borrower hands over the deed to the property (with marketable title) to the lender who agrees to accept the deed, thereby eliminating the need to pursue a foreclosure sale. Sometimes a lender will require short sale efforts before they would accept the deed in lieu of foreclosure.
Why would a lender agree to a short sale or deed in lieu of foreclosure? It costs less for a lender to do a short sale or accept a deed in lieu than it does to pursue a foreclosure. So where it makes financial sense, the lenders will entertain these loss mitigation measures.
When receiving real estate advice, individuals should always seek their own legal and tax advice pertaining to each persons financial portfolio.