Margaret Melvin Can Help You Avoid Foreclosure...
As a Certified Distressed Property Expert, Realtor® & Associate Broker, I can give you the expertise necessary to save your credit, relieve the uncertainty and most of all, help your family.
Contact me, Margaret Melvin, and let's get started towards the path of recovery.
Worried About Losing Your Home To Foreclosure?
Sometimes, bad things happen to good people. You are not alone. Nationwide, over 9% of all mortgages are in default, meaning that they are 30+ days late with their payment. There are many different reasons for someone to be unable to make their mortgage payment, and regardless of what yours may be, there is most likely a way to avoid foreclosure!
Margaret Melvin is a Certified Distressed Property Expert (CDPE), and can help you find a solution. Whether your solution will keep you in your home, or allow you to sell your home in what is called a "short sale," my goal is to negotiate with your lender and help you avoid a credit-destroying and emotionally damaging foreclosure.
To speak confidentially with Margaret Melvin about what your options are, simply contact me now.
Why Not Just Let It "Go Back To The Bank?"
While it may not seem like it now, there will come a time when your current financial troubles will pass. You will feel much better knowing that you did everything you could to avoid this devastating financial consequence. The chance at avoiding foreclosure takes only effort and cooperation on your part. As your agents, we will do all the rest, and invest our time, money, and effort.
Reasons To Avoid Foreclosure:
- Your credit scores will be lowered by 300+ points, and a foreclosure is the most devastating credit issue you can have, in relation to future credit availability.
- A foreclosure is the one credit item that is almost impossible to have "repaired." It will appear on your credit report for at least 10 years!
- You will always have to disclose that you have had a foreclosure on any financing application you submit, and this can, obviously, have an adverse affect on your future interest rates. This is the only credit item that is asked specifically, and doesn't rely on what is on your credit report. There is no 7 year time limit on this item!
- Your lender(s) can seek a deficiency judgment against you, and collect for any amount they don't recuperate at the bank sale, which can land you in never-ending collections. That amount is usually much larger than with a short sale.
- Many employers run credit checks on prospective employees, and foreclosure is one of the top items that will put a potential new hire in jeopardy.
- Many employers are also running credit checks on current employees, and we've been hearing of employees being passed over for promotions, demoted, and even fired!
- Anyone with security clearances (government, military, law enforcement, etc.) may have that clearance jeopardized by a foreclosure.
What Is A Certified Distressed Property Expert?
Eighty-five percent of homeowners experiencing financial distress say their first contact will be to a licensed agent. Yet, fewer than 1 percent of agents consider themselves foreclosure or distressed property experts. Margaret Melvin has taken the time and money to invest in the education necessary to allow her to help people in this most difficult and stressful situation.
Eighty-five percent of homeowners experiencing financial distress say their first contact will be to a licensed agent. Yet, fewer than 1 percent of agents consider themselves foreclosure or distressed property experts. Margaret Melvin has taken the time and money to invest in the education necessary to allow her to help people in this most difficult and stressful situation.
The developers of the Certified Distressed Property Expert Designation (CDPE) believe that in almost all cases the best person for a homeowner in distress to speak with is a well-informed, licensed Realtor® that has the tools needed to help that homeowner find the best solution for their situation. Foreclosure is a devastating financial and emotional process for a homeowner to go through, and in many cases they do so alone and without guidance of any kind, and therefore never recover financially.
Through extensive and ongoing education, Margaret Melvin has earned the CDPE Designation, and has dedicated his time and effort to understanding the issues distressed homeowners are dealing with. She understands the full range of solutions and is ready to help. While experiencing financial distress is difficult for any family, the process of finding a real estate professional shouldn't be. Selecting a CDPE agent ensures you are dealing with a professional ready to address your needs.
Through extensive and ongoing education, Margaret Melvin has earned the CDPE Designation, and has dedicated his time and effort to understanding the issues distressed homeowners are dealing with. She understands the full range of solutions and is ready to help. While experiencing financial distress is difficult for any family, the process of finding a real estate professional shouldn't be. Selecting a CDPE agent ensures you are dealing with a professional ready to address your needs.
We are here to help, and will use the utmost discretion!
Frequently Asked Questions About Short Sales
"Short Sale" is a relatively new expression to many homeowners, yet this type of sale has been part of the real estate market for many years. Unfortunately, most Realtors aren't familiar with the process, which has caused a lot of confusion in the community, with homeowners and even other Realtors. Because we're Certified Distressed Property Experts, we thought it would be prudent to explain and dispel some of the misunderstandings.
What Is A Short Sale?
A Short Sale is when:
- A homeowner is authorized, by the bank, to sell for less than what is owed on the mortgage.
- The lender authorizes or accepts the sales price as a payoff.
- The seller avoids a credit-destroying foreclosure, and sometimes they can also avoid a deficiency judgment.
- The seller won't get any money at closing, yet they will avoid the financial and emotional damage that a foreclosure can cause. During our negotiations with the bank, we work to include a favorable wording for the forgiven debt of the mortgage, which can help the recovery of the homeowner. And we're able to do so in many circumstances.
Why Would A Lender Agree To Lose Money?
A lender loses significantly more money if they have to incur the additional expenses of a foreclosure, as opposed to accepting a short sale.
Lenders are in the business of lending money, not owning homes. The more money they have tied up with a property that they own, the less they have to lend out.
How Does A Short Sale Help Me?
It helps you avoid a credit-destroying, and an emotionally draining foreclosure process.
Avoiding a foreclosure will help save your credit. Typically a foreclosure will drop your credit score up to 300 points per loan.
You avoid having a foreclosure on your credit report anywhere from 10 to 15 years, which affects your future purchasing power and interest rates.
It could help you avoid a deficiency judgment from the lender after the foreclosure, as they try to recover their losses.
I've Already Received My Foreclosure Notice. Is It Too Late For A Short Sale?
The short answer is no. There are a few variables, though, that can affect the foreclosure timeline.
A qualified Realtor, or better yet, a Certified Distressed Property Expert, can help you extend the foreclosure timeline up to 6 months, and in many circumstances up to 7 or 8 months. A home sale can be done and approved, up to the day of the bank sale, or auction of the home.
Please review the Maryland Consumer guide to foreclosure and short sales.
I Haven't Missed Any Mortgage Payments. Can I Still Do A Short Sale?
Often times, the lender will not consider a short sale if there have not been any missed payments. That issue can be overcome if we can show a compelling reason (hardship) why the payments have been made, and why the payments are going to stop in the near future.
We would need to show how the payments were made, and where the money came from. If the payments were made with your credit cards, by borrowing from family members, or even if the money came from retirement accounts, as an example, it would help build the case. This will not guarantee that the lender will accept the short sale, however, there are instances where they have done so.
How Do I Pay The Realtor Commissions, Taxes And Other Expenses Associated With A Home Sale?
The homeowner doesn't pay any of the expenses associated with the sale of the home, such as commissions and other closing costs. Those expenses are paid by the lender. They are, however, included as part of the total shortfall that the owner would be responsible for, if the bank is successful with a deficiency judgment or promissory note.
The bank may ask the homeowner to reduce the lender's loss by making a payment, if the homeowner has any "extra" money in savings accounts, etc., or by signing a promissory note.
In December 2007, President Bush signed into law, the Mortgage Forgiveness Debt Relief Act, which eliminates the capital gain income tax that used to be levied on the forgiven portion of the primary residence's sale. The tax is still in effect for second homes, and investment properties.
To speak confidentially with Margaret Melvin about your options, simply contact me now.
