Little Things Grow Into BIG THINGS...

As a real estate agent, I see many many different situations for both buyers and sellers.

It is fairly common right now that sellers in a Short Sale situation have not made their mortgage payment in a few months. That is not uncommon or in itself a significant problem. However, it can quickly GROW into a BIG problem if nothing is done about the situation.

Here are 3 possibly directions if you missed more than 1 mortgage payment:

1. Contact your lender... Don't wait for them to call you. Ask them what they can do to help you. Generally, they don't have a program that can help available. Statistics vary, but most show a 4.0 to 4.8% success rate for all loan modification programs since 2007. Commonly, the lender will attempt to get you to make some type of payment to keep revenue coming from you. They will call it a "trial mod" or some other similar name...
2. Contact a REALTOR, a CPA or a REAL ESTATE ATTORNEY... I do not recommended that you speak with a Bankruptcy Attorney 1st. Reason, I have NEVER seen one recommend anything except the BK Filing. Any of the other 3 should be able to provide you with excellent direction for FREE or for a very small sitting fee. Make a plan and move into the future with some level of control.
3. Act as if nothing is happening... I have heard many times people say, "Oh, I am just waiting to hear from the lender." Well, that thing they hear may not be very good. It may be a NOD followed by a Notice of Trustee Sale which means the road to FORECLOSURE and LOSING the home may be a short one from that point. If that happens, SEE STEP 2

For additional information, Call me at 916-751-1800 or visit www.TEAMPattersonRealty.com

Thanks for reading!

Recently SOLD - Short Sale Listings

1. 108 Amber Waves Ct - Roseville, CA; 1st and 2nd Mortgages; Liens and Full Notes Released with No Further Recourse - ZERO out of pocket for seller


2. 2103 Donovan Drive - Lincoln, CA; 1st and 2nd mortgages; Liens and Full Notes Released with No Further Recourse - $290 Cash out of pocket for Seller


3. 2919 Springburn Way - El Dorado Hills, CA; 1st and 2nd mortgages; Liens and Full Notes Released with No Further Recourse - $1240 Cash out of Pocket for Seller for 2nd release of $168,000 note.

REALITY - Mortgage Lenders/ Servicers are on the OPPOSITE SIDE

One reality the current home market should teach us all is that your mortgage lender is NOT YOUR FRIEND. They are on the OPPOSITE SIDE of the transaction. This means they are concerned about THEIR INTERESTS 1st and foremost. -- This in not an opinion. It is reality.

For those of you conducting or considering a short sale transaction and seeking to negotiate with lenders. This statement is something you should consider EVERY time you speak with anyone regarding the situation...

Too many times people get hung up on the "morals" of this or "ethics" of that when in reality a short sale is very simply one of hundreds of thousands of transactions conducted by businesses around the world each you in which a corporation CHOOSES to take a loss. Even as individuals, we CHOOSE to take losses very regularly.

Examples: You buy a stock that doesn't perform and losses value then sell it. You have chosen to take a loss. A business opens a location in an area that does not meet projections for revenue and close the location without breaking even. They have chosen to take a loss. Same company downsizes by 3000 employees and closes 4 production plants in order to survive and takes a charge off. They have again chosen to take a loss.

Why do companies and people choose to take losses? Many reasons... eliminate risk, reduce further losses, cap overall losses, require liquidity for use on another more profitable transaction... The list is endless. But ultimately what is being sought is a GAIN in from the current position through the transaction.

Make no mistake. A short sale is very simply a choice by a corporation and individual and possibly an investor (Corporation or Individual) to take a loss for their own self interests. There are NO gifts or niceties involved what-so-ever. We are NOT talking about Morals or Ethics at all so long at their is ALWAYS full disclosure. We are talking about a SIMPLE and COMMON business transaction.

The lender/ servicer is attempting to GAIN from the transaction. They are NOT doing you favor or conducting Short Sales for the good of society. It is BUSINESS and this is what makes AMERICA GREAT! A company for their own self serving interests can conduct a transaction that betters their position and as a consequence potentially improve the position of borrowers.

Opposing thoughts are always welcome!