Brick 3 bedrooms 1 bath with partially finished basement ( Rec-room and extra sleeping area). There is a small deck overlooking fenced level backyard. Property needs some TLC but will make a great house for a handy buyer.
Get specific details on the listing by clicking here.
Kevin Cottrell / Cottrell Realty Group / St Louis, MO
Here's a re-run of my
analysis of the Obama Housing Plan:
Unfortunately,
and not just for St. Louis MO homeowners who may be in trouble, it is much ado
about nothing ... To complicate things, unfortunately, our friends in the media
know little (and want to report less about the truths of the market – remember sensational
title sell best)
about the housing crisis that we're living through, but let's
start talking about this new "Homeowner Affordability and Stability
Plan" that was announced by the President.
Obama’s administration is saying that the plan will enable "up to 4 to 5
million responsible homeowners to refinance." That's true ... and a
great boom for loan officers and title companies, but let's look a little more
at these claims that they will stop foreclosures. It helps folks who
right now aren't the ones really struggling ... and ignores the folks under
water on their mortgage beyond 5%.
Please let me explain as the media and most of the rest of the world
missed this 5% issue – and it’s a big one for foreclosure and mortgage relief.
Let's read directly from the White
Houses' summary:
"Consider a family that took out a 30-year fixed rate mortgage of $207,000
with an interest rate of 6.50% on a house worth $260,000 at the time. Today,
that family has about $200,000 remaining on their mortgage, but the value of
that home has fallen 15 percent to $221,000 - making them ineligible for
today's low interest rates that now generally require the borrower to have 20
percent home equity. Under this refinancing plan, that family could refinance
to a rate near 5.16% - reducing their annual payments by over $2,300."
Yep, they sure can do that ... but guess what? Most of the folks who will
take advantage of this are not the folks that are in foreclosure or currently
facing foreclosure! If they have a conventional mortgage with Fannie and
Freddie, they aren't the issue right now ... for the most part, the subprime
garbage is.
But there's a magic number out there 105%. Yes, that's what we're talking
about. If the loan is less than
than 105% of its current market value, they might be eligible for
refinance.
Here’s
the crux of the issue and why this issue will NOT fix short sales and foreclosure volume in the United
States.
The
vast majority of the people in foreclosure (or who have been foreclosed on in
the past year) purchased with 100% financing (80/20 purchase loans) or have
pulled all of their equity out via a refinance using a home equity loan and/or
a ‘cash out’ first/second mortgage ...
An
here’s the kicker – and a bigger issue outside of St. Louis MO’s Real Estate
Market - most homes lost at least 15%
of value last year, and in California, Nevada, Arizona and Florida, at
least double that to more than 30%. Obam’s plan does nothing for these
homeowners.
Now let's think about this further. In order to refinance with Fannie and
Freddie, you have to not only have equity in your home (or in this case you
can't be under water more than 5%), but you also have the meet the guidelines
for a loan refinance. That means you have be employed. You must
have a job. Stated and exotic NINJA (no income, no job, no assets) loans
aren't around anymore. So everyone who just lost their job doesn't
qualify for this help.
But is this a good idea, regardless of whether it won't help people facing
foreclosure? Our answer is -Yes. If we can reduce mortgage rates – thus allowing
millions of Americans to have more money in their pockets – this will
collectively translate into more consumer spending and a speedier and more
robust recovery from the recession. Frankly
I like this idea a lot more than the $400 a year tax credit that will do little
to actually help our economy.
Now back to the foreclosure / short sale problem at hand. Unfortunately, with 80%+ of distressed
properties having a first and second mortgage, modifications for those who were
over leveraged is going to be next to impossible unless they've been paying
extra payments to bring down their loan balance.
If
you were listening carefully you hear what Obama signaled that he supports?
Cram downs. What is a Cram Down? Unless you were in the real estate business
in the early 1990’s during the commercial real estate S&L crisis – you likely
have never encountered or heard of this term. It was commonplace then and was
effective – but costly (to lenders).
That's when a bankruptcy court judge steps in and basically modifies loans and
cuts its principal balance – the balance amount is crammed down to a lower
amount. If you’re a lender (or mortgage holder) you DO NOT like the thought of
this as it guarantees costs and losses – all from a judicial system that is
supposed to figure out a fair and reasonable amount to cram down the loan
principal balance amount to.
This
certainly sounds like an exciting premise if you are a homeowner facing
foreclosure and ready to file or already in bankruptcy. But here's the rub: if you violate the
sanctity of contracts, you will add uncertainty (and costs – which could be
significant) to the end investor, which means they are not willing to pay as
much for the loan portfolio. Bottom line
here, this cram down scenario will drive up interest rates.
One of the most common question I’m getting now is the following: In fact, I spoke with a
Ballwin MO homeowner
contemplating his options. Will cram
downs slow short sales?
NO! , the reason people do short sales is to save their credit and stop a
foreclosure. Do you think those doing short sales want a bankruptcy on
their record – something that will certainly delay their ability to purchase a
home in the future significantly longer than short sale w/o foreclosure? NO
– definitely not.
No,
those are the individuals that don't want to a short sale anyhow ... those are
the ones that really want to stay in the home and believe with a modification
they can afford it.
What cram downs may do is create an incentive for lenders to approve more short
sales and modify more loans. Why? Because they don't necessarily
want to roll the dice with a bankruptcy court judge.
Another question we hear every day now – in fact I heard this from a homeowner
from Webster Groves and another in a condo in Kirkwood – “But I read that these
banks are putting moratoriums on foreclosures? Won't that mean fewer REOs
and short sales?”
This is a key fact that the Obama Administration and the media miss daily - Who
owns the majority of loans in trouble? It isn't the banks! It is
the investors that purchased these loans. They then hired a servicing
company to service that loan on behalf of Collateralized Debt Obligation A76XE63
in Singapore. This is critically important: the majority of homes in
foreclosure are not owned by banks, they are owned by investors who bought
mortgaged backed securities.
To further complicate things – as was noted in article in the Wall Street
Journal today – these very investors are now threatening to sue the servicer if
they mess up a modification or mishandle a foreclosure. "The
securitization has split the interest in the home loan among so many different
parties that it is difficult for servicers to make a modification without fear
that some significant party may sue or do something else that hurts the
servicers," Kurt Eggert, a professor at Chapman University, told the
Journal. And Obama thinks that the minor
financial incentive in the plan announced this week will overcome this fear of
being sued – I would not expect so! (see below for specifics on the monetary
carrot offered in the plan to lenders)
So, we've talked about loan refinance and cram downs. What about the
modification for those who are in foreclosure? What is that all about?
Under the plan announced by Obama this week - First, the lender reduces the
interest rate on the mortgage to no more than 38% of the borrower's income.
(Note: what if they don't have a job...kinda hard to do, huh?). Interesting side note – the average debt to
income ratio for our short sale clients who we gain approval on their sale is
83% - BEFORE the mortgage debt is added in – with mortgage debt –their ratios
are over 100% meaning they are paying more out per month at their current loan
interest rate than they take in per month.
These clients would NOT be eligible for the program.
Second, the government will match dollar for dollar the reduction from 38% to
31% debt to income ratio (government is buying down interest rates, not a bad
idea, but the investor has to take the hit getting to 38% which many of them
won't do).
Third, lenders must keep the modification in place for 5 years.
In order to incentivize lenders, the government will pay the $1,000 for the
initial modification and then will give a $1,000 payment for the next three
years if the loan is current.
Then the government will give a carrot to the homeowner of a $1,000 principal
reduction for up to $1,000 each year for the next 5 years.
So does this do anything to really stem the foreclosure tide?
Unfortunately not really ... because lenders know the nasty statistics
that most folks don't want to talk about.
But the New York Times told it to everyone on its front page today. Guess
what? Read it for yourself: "The nation's 14 largest banks reported
that more than half of the loans they
modified last year were delinquent again after just six months,
according to the federal bank regulator, the comptroller of the currency."
Yes, after just six months over half of the modifications that were done went
back into foreclosure. Why? First of all, a lot of people that
never should have been homeowners became homeowners with 100% financing.
They aren't ready for the responsibility of owning a home and aren't able
to manage their finances accordingly. Second, the economy has a lot of folks
wiped out and they've lost their job. And third, after paying for a
property that they know is $75,000+ underwater, at some point they just walk
from it because it frankly doesn't make economic sense to keep it, especially
since their credit is shot already because they've missed so many payments.
They can bail out now, rebuild their credit, and buy something again in a
few more years (with a short sale they only have to generally wait about 2
years).
So what really happened this week? A big mess just got messier.
False hope was given to millions of people facing foreclosure that own
homes that are never going to get refinance or modified in a meaningful manner.
If you are behind on
your mortgage and looking for foreclosure help in Saint. Louis MO – have zero
or negative equity or are looking to evaluate whether a short sale is the right
option for you, please CALL US TODAY – 314-779-3688 or email us at shortsalehelp@cottrellrealty.com .
For qualified homeowners
– we are getting more than 80% of our short sales approved by lenders.
Readers looking for additional short sale information can click here.
We
expect the volume to continue to increase in 2009 with lenders becoming MORE
and not less inclined to do a short sale vs. a cram down or foreclosure. Its saves them money and mitigates their
losses.
Frequently Asked
Questions - Short Sales
A
Short Sale is the sale of a home or condo in the St. Louis MO area from which
the sales proceeds are not sufficient to pay off the existing loan(s) and the
mortgage lender(s) agree to accept a discounted (or reduced) payoff and agree
that these reduced amounts are enough to fully satisfy the loan and allow the
transaction to close and the seller to sell the house or condo.
The
best part for St. Louis MO sellers is the fact that the existing lender generally
pays all sales costs, including commissions, sale expenses and repair costs. Most important - You get your home or condo in
the St. Louis market sold and the loan(s) are paid off and you avoid
foreclosure.
Unlike
even a year ago, most mortgage lenders are increasingly willing to work with
borrowers struggling with a financial hardship and accept a reduced or
discounted payoff on the mortgage. If you are faced with a financial or life hardship
that makes it likely you will be unable to make your payments on your mortgage,
your lender would prefer to accept less money now from the sale as opposed to taking
the property through foreclosure – which often results in significantly higher
losses to them.
As
you consider the option of pursuing a Short Sale, remember the important fact
that your lender is looking to limit any potential loss on your loan. Again,
under a Short Sale, your lender has arrived at a solution that is, for them,
much better than a foreclosure.
The
Good news for Saint Louis MO homeowners: Your lender wants to work with you.
How much will I have to pay to sell my
home under a short sale?
Great
news here. Generally Nothing. As puzzling
as this may sound, in most cases you will pay literally no sales costs if your
lender approves your Short Sale. All commissions, title and even most repair
expenses are paid by the lender as part of the Short Sale transaction.
Cottrell
Realty Group’s short sale experts include language to protect you as a seller
in every contract.
"Seller’s
agreement to sell is subject to approval by existing lender of a Short Sale at
no cost to Seller. Seller shall not be required to deposit funds to close this
transaction."
Remember,
lenders approve Short Sales and accept less than they are owed in an effort to
avoid much larger losses through foreclosure.
How do I get started on a
Short Sale?
It’s
easy. If you would like to get pre-qualified for a Short Sale, or if you would
prefer to discuss it on the phone, or set an appointment call 314-779-3688.
There is no charge to you to get started. It is as simple as contacting us and
we will get to work. If you later decide you don't want to do a short sale,
that is okay too.
Can I simply deed my
property to someone else and avoid the hassle?
Deeding
your property to someone without paying off the loan is nearly always a bad
idea. We have seen example after example of problems with this scenario in the
St. Louis area. In the first place, the
lender still considers you primarily responsible for payment on the loan. If
loan payments do not get paid, or if the lender ultimately forecloses, this
will show on your credit.
Secondly,
when you deed your property to someone else, you give up control of the
property. Along with the deed goes the ability to control the property.
Do
not deed your property to someone without paying off the loan unless you have
consulted with an attorney.
What sort of hardship would my
lender consider legitimate?
There are some general guidelines that lenders use, however, much will depend upon the mortgage company considering the short sale. The general rule or guideline is the following: as long as the financial or life hardship is legitimate and the mortgage
company believes the loan is most likely going to become delinquent or default (foreclose) as a result, the short sale request will likely be processed for consideration by the Short Sale or Loss Mitigation Department at the lender. A major factor in
getting Loss Mitigation to accept a hardship is to submit a strong, well written hardship
letter. The hardship letter from the seller sets the tone for the entire transaction.
Below
you will find a list of some common “hardships.” We've listed the ones that are frequently accepted by
mortgage lenders.
·
Family illness or personal injury - especially with large medical bills and/or loss work
·
Illness or injury in the seller's family – especially if it forces your relocation
·
Seller Job relocation - typically when the property is equity deficient
·
Job loss or significant income loss
·
Divorce or split of domestic partners
·
Adjustment in mortgage payment or unforeseen increase in living expenses
I am current on my mortgage, will
my lender consider a Short Sale?
The
answer is, maybe. Some lenders will accept a Short Sale file for approval on
loans that are not delinquent. Other lenders will not accept the file until the
loan is delinquent. We can put your Short Sale file together within a couple
days and submit it for approval. (Remember, there is no charge for this). That
is the best way to determine if your lender will accept a file for approval on
a loan that is current.
Why would a mortgage company agree
to accept a Short Sale?
There
are actually several reasons why a mortgage company would approve a Short Sale
payoff, including the following;
Legal
Concerns – Mortgage lenders have come under legal pressure to work with borrowers
to equitably resolve situations where borrowers are unable to meet their
mortgage obligation, particularly when the borrower makes an effort to arrive
at a compromise solution.
Wall
Street is Watching – Mortgage lenders rely heavily on their ability to package
and sell bundles of loans on the secondary mortgage market. They need to sell
these bundles of loans in order to put the funds back to work by loaning the
money again and collect loan fees along the way. If mortgages perform poorly
after they are sold it could impact the lender's ability to sell their loans on
the secondary market. A successful Short Sale gets the loan payoff resolved
quickly.
Asset
Management Expenses- If a lender acquires a property through foreclosure, the
property will be managed until it is repaired and resold. It is expensive to
manage real property assets - homes – spread throughout the region, the state
and possibly even the nation. Keeping properties maintained, keeping utilities
on, making repairs and the administrative costs attached to these activities
are all costs the lender would prefer to avoid. A successful Short Sale
eliminates most of these costs
Reserve
Requirement- Delinquent and non-performing loans place another burden on
mortgage lenders. For all delinquent and non-performing loans lenders must set
aside funds in reserve to deal with potential losses. These funds cannot be put
to work generating new loan fees until the bad loans are resolved. A successful
Short Sale lets the lender put more money to work.
Do lenders approve all Short Sales?
In
a word, no. That is why it is critical to work with someone that has extensive
experience at getting Short Sales approved.
From
how to present the Short Sale package to the lender, to negotiating
with the lenders Loss Mitigations Department, we know how to keep the file
moving towards approval.
The
first step is to get pre-qualified for a Short Sale. There is no charge for
this, and it’s easy.
Contact our team
today for further details.
I have two loans, can I still do a
Short Sale?
Yes.
We can work with both lenders (many times the same lender hold the 1st and the
2nd loans) to put together a Short Sale transaction. Even if the value of your
home is below the balance of the 1st mortgage, we can normally get the two
lenders to cooperate.
In
the end, neither lender wants to own another home through foreclosure.
My property is in rough
shape and needs work; can I still do a Short Sale?
Absolutely.
In fact, lenders are more motivated to do a Short Sale on a property that needs
work than on a property that doesn’t. The lender knows the risk of loss goes up
when they foreclose on a property that needs lots of work.
Aside
from expense of completing the work, lenders are simply not set up to get the
work done. They are in the loan business, not the fix- it business.
I am concerned about my credit. How
will a Short Sale affect my credit?
The
big key here is to avoid foreclosure. By nearly any measure, a foreclosure is
the most damaging event your credit status can encounter - worse than
bankruptcy. In the course of getting your short sale approved you may miss your
mortgage payments, and these will show on your credit.
By
avoiding foreclosure, you will likely be able to resume normal borrowing (car
loans, credit cards, consumer goods and such) relatively quickly
My income problem was temporary. Do I
need to sell my home?
You
may be able to keep your home. You need to convince your mortgage company of
two things:
The
problem that caused the mortgage payment disruption was beyond your control –
illness, injury, temporary disability or forced job change are a few examples
You
are now solidly in a position to stay current on your mortgage payments and
make some progress towards making up the delinquent amount.
What is a Forbearance Agreement?
A
Forbearance Agreement is a written agreement with your mortgage company in
which you arrange to keep your home. The agreement will normally include two
primary elements:
The
borrower’s promise to remain current on the mortgage going forward
Some plan for making up the delinquent interest and other charges. It may mean making additional payments to the mortgage company or the delinquent amount could be added to the loan to be paid later.
ASK THE ST. LOUIS REAL ESTATE EXPERT
In a typical week, we’re asked hundreds of questions from buyers and sellers. We find that we are often asked the same questions again and again. This section of blog lists these questions in an effort to share expert advice to anyone interested in the St. Louis area.
Question:
“I owe more than what
I believe my house is worth, can I do a short sale even if I’m not behind on my
payments?” – Lisa S. , St. Louis MO
Answer:
“In answering this
question, we need to explore a couple of other factors. Certainly owing more than the property will
generate as far as proceeds after real estate commissions, cost of sale and
other expenses is one of the factors that a lender evaluates in considering
accepting a short sale in St. Louis MO, there are others:
We understand that
defaulting on your mortgage is a difficult situation. Many people foresee
themselves heading into default, or are already in foreclosure. What many
people don’t realize is that they have options before foreclosure and one of
them is a short sale. A short sale is an alternative to foreclosure and
one that we can offer advice about to you.
Negotiating a short
sale is time consuming & takes a team that is experienced and understands
the short sale process. This is why it is critical to choose the correct
team to handle your short sale. "
What is a Short Sale? If you have to sell your home and you want to avoid continuous late mortgage payments and/or a foreclosure then a short sale is one option. A short sale is when your mortgage company accepts less than what is owed. To cut their losses lenders will accept less for a property than the loan value. In some cases a short sale is less expensive and easier for the bank than foreclosing-especially if home prices are declining.
What are the drawbacks? You can spend countless hours researching to find out how a short sale will affect you credit. I have always been told that the bottom line is-a foreclosure is more damaging than a short sale. The impact to credit scores diminishes over time. The Internal Revenue Service may treat the difference as taxable income and issue you a 1099C statement. However, the Mortgage Forgiveness Debt Relief Act of 2007 might prevent you from being taxed. December 20th 2007, the president signed IRS Revision Bill HR3648 into law. Consult a professional tax advisor.
What are the advantages? It is less damaging than foreclosure. The homeowner can avoid bankruptcy. The homeowner can get out of a dire and stressful situation commonly caused by job loss, divorce, a sudden drop in income, or the inability to meet rising payments of an adjustable mortgage.
How much does this cost? The bank pays our commission and fees.
What are the alternatives? Foreclosure, bankruptcy, finding another person to assume your loan, deed in lieu of foreclosure, forbearance, loan modification, refinance, reinstate your loan, contact a HUD-approved Housing Counseling Agency, Home Owner Recovery Act of 2008. This new bill will allow a qualified home owner with the lenders approval, to refinance their home at 90% of the homes newly appraised value. There is one caveat to this new program-the home owner will be required to share in the future appreciation of the property with the government.
THERE IS HELP AVAILABLE-YOU HAVE TO MAKE THE CALL!
The Cottrell Realty Group is considered a reliable resource for short sale consultation. Don’t hesitate to contact us.
Phone: (314) 517-3474
Email: bill@cottrellrealty.com
Agents Click Here for Short Sale Program!!
*Note: I am not a tax professional or an attorney-please seek the appropriate licensed professional.
The reasons for the inquiries from real estate agents are usually very similiar...
You've come to the right place… Read on to learn about your options as a current or prospective listing agent …And earn a referral fee in the process of doing the right thing for your seller or listing prospect.
As you probably already know, once a foreclosure has occurred, the foreclosure sale notation may remain on your seller's credit report for as long as ten years, severely restricting or inhibiting their ability to apply for other types of credit. Worse yet, it may also provide a real roadblock when they later try to buy a home. Wouldn't it be great if you could refer them to a professional team who could provide immediate assistance - and earn a referral fee in the process.
What you may NOT be aware of is that you do have options - don't let your sellers face foreclosure unnecessarily. Please don't immediately dismiss listing prospects or cancel listings with zero or negative equity.
Why refer your listing or prospects to Cottrell Realty Group?
Experience Matters!
Cottrell Realty Group has helped numerous homeowners around the Saint Louis/St. Charles MO metropolitan area stop foreclosure and stay out of trouble with their lenders. We are proud to provide you with THE BEST solutions in the Saint Louis area so you won't need to lose sleep over your seller's situation. In fact, our track record for short sale approvals is above 80%. Compare that to the 'we buy ugly houses' or investor short sale approval rate of 30-35%. For most agents we speak with, they have never worked on a short sale or have completed less than 3 successful sales. This is not the market to be learning on the job with your clients at risk.
We employ full-time highly experienced short sale negotiators on our team. We would strongly suggest that you not try to work on a short sale until you've reviewed the process with us in detail. If after speaking to us you want to proceed, our tips and suggestions will place you and your clients in a better position to succeed. If not, we'll enter into a referral agreement and assist your client with their short sale.
You DO have options right now. Click Here or Call us today at 314-779-3600 to discuss our short sale referral program. Your next referral fee is only a phone call away. Think about how many referrals your grateful clients will send you over your career if they understand that you were intrumental in assisting them in avoiding foreclosure.
For Saint Louis / St. Charles metropolitan area homeowners struggling to make payments, sitting with a home or condo with no or negative equity (and unable to refinance a rapidly increasing adjustable loan) the options may seem dismal. Many are looking at the possibility of facing foreclosure."In many states, including Missouri, there is only a 21 day period that your lender has to announce before they can foreclose, so the longer you wait, the less options you allow yourself."
As you probably already know, once a foreclosure has occurred, the foreclosure sale notation may remain on your credit report for as long as ten years, severely restricting or inhibiting your ability to apply for other types of credit. Worse yet, it may also provide a real roadblock when you later try to buy a home.
What you may NOT be aware of is that you do have options. Cottrell Realty Group has helped numerous homeowners around the St. Louis /St. Charles MO metropolitan area stop foreclosure and stay out of trouble. We are proud to provide you with THE MOST COMPLETE AND BEST solutions in the Saint Louis / St. Charles MO area so you won't need to remain hopeless and lose sleep over your situation. As the real estate market in Saint Louis/St. Charles area continues to soften, we expect an ever increasing number of homeowners to be faced with the possibility of being unable to sell and/or foreclosure.
We're here to help now. Remember, regardless of how hopeless things may seem, you DO have options right now. You don't have to watch your home get taken from you. It's time for YOU to decide to take action and call us today at 314-779-3600.
"It is also a common mis-conception that you must already be behind on your payments in order to begin the short sale process with your lender."
Many people facing foreclosure become paralyzed and simply freeze, do nothing to resolve their situation, and hope for a financial or other miracle. Please Don't fall into that trap!
Just because your lender hasn't sent you any formal notices or has stopped calling doesn't mean that
they have granted you relief. In many states, including Missouri, there is only a 21 day period that your lender has to announce before they can foreclose, so the longer you wait, the less options you allow yourself.
Also, beware that once the foreclosure process has begun your lender will accelerate your loan. Unfortunately, this means that they will likely no longer accept a payment less than the full amount due, including back payments. Even if you send them anything less than the full amount owed, they will likely send it back to you, asking for the entire loan balance.
Also, beware that the longer you delay, the more court costs, late charges, and attorney's fees that will be assessed against your loan balance. Please DON'T WAIT. Time is your enemy. You're taking the first major step by taking initiative. You're already better off than many others that are facing your same exact situation today! And the faster you allow us to help you, the more options you'll allow yourself!
So What Are The Options?
Click here for immediate help!
Forbearance Agreement
Often times your lender will work with you to help you get caught up on your back payments. Keep in mind that your lender does not WANT to foreclose on your house.The bank is not in the real estate business. They are in the business of loaning money, and when they have to take back a house on a foreclosure, it looks bad on their records. Many times, if you ask them, they will work with you to help you get caught up.
For example, if your normal house payment is $1000 per month, and you're 3 months behind, sometimes the bank will allow you to make up that $3000 that you're behind over the next 6 months. Then for the next 6 months you will pay your normal house payment of $1000 per month, PLUS an additional $500 per month, until you're caught up. If you are able to make that additional payment for a while, and your lender is willing to do this, sometimes the solution is as easy as that.
However, in this situation, it is essential that you are 100% confident that you can live up to this agreement and pay ALL of your future payments on the exact due date that is agreed upon. Often, if you are even one day late on any future forbearance agreement payments, the lender will immediately initiate a foreclosure again, and you will not be given a second chance.
Cottrell Realty Group can help you get through this process - free of charge!
Get Help Making Up Back Payments
Is it possible that you have overlooked a way to make up the back payments?
- Do you have a 401K you can borrow from?
- Can you borrow from friends or family?
- Do you have a credit card you can cash advance to help get you caught up?
- Can you get a cash advance at your current job?
- Do you have anything of value that you could sell or even borrow money against?
Sometimes, lenders will give you loans no matter what your current credit situation is if you have something of value to use as collateral.
Just make sure that you're not borrowing MORE money to get you FURTHER in the hole. The last thing you want to have happen is to be in this same situation 3 or 4 months from now AND owe other people money too!
Sell your house
Have you tried to sell your house with no luck? Have you even considered the option of selling? In some situations, the best answer is to just sell the house and start over fresh with something new.More often than not, however, this is not simple task. It is very common for potential buyers to ask the sellers to fix everything in the house before they will move in. If your house needs any repairs at all, this could pose a problem. Also, as you may already know, it's pretty easy for the buyer to back out of a contract at the last minute if everything does not go as planned. Sometimes, you may even owe more on the house than it's able to sell for. (If so, refer to the "Short Sale" option below)
Cottrell Realty Group has the best and most experienced licensed realtors in the St. Louis area on staff to assist you in the selling of your home. And we don't just stick with the "traditional" ways to sell your house. We've got dozens of cutting edge and innovative ways to market and sell your house...ways that most traditional realtors can't even imagine! Just keep in mind that sometimes a traditional sales process can only work if given enough time.
If your foreclosure date is just around the corner and there proves to be not enough time to sell the house, we'll have an extensive network of investors who will actually BUY it! How's that for a guarantee?
Initiate a "SHORT SALE" with Your Lender
What in the heck is a short sale you may ask? A short sale is when the lender is willing to "discount" what you owe them in exchange for a total payoff, so that they don't have to foreclose.What does that mean? Here's an example… let's say that you owe $200,000 on your home, and it's only WORTH $200,000 or possibly less. In this case, it would be difficult to sell the house fast, because you would have to find someone willing to pay full price for your home. PLUS, the buyer would have to be willing to close QUICKLY, so that you could sell the house before it goes to foreclosure.
Cottrell Realty Group can initiate a short sale with your lender to "create" the equity that will help sell your home quickly. Even if you currently owe more money than the house is worth! And even if it
needs repairs! No matter how pretty or ugly the house is, and no matter how much you owe on the house, we can help! It is also a common mis-conception that you must already be behind on your payments in order to begin the short sale process with your lender. Don't delay, call us today to discuss your situation. 314-779-3600.
Best of all, in a short sale, the lender pays all the costs of the sale - including the commissions of the real estate agents.
Was your home listed with another agent and expired?
Was it listed and you felt that you couldn't lower the price any further as the loan balance would exceed what you would net?
A short sale is a great option for sellers who had tried to sell previously with a traditional old-fashioned agent who suggested pricing the home at a price high enough to cover the costs of the sale (including their commission). In the soft market we're experiencing in the Saint Louis/St. Charles MO metropolitan area, over priced homes are not selling. We find that we are able to quickly help sellers by correctly pricing their homes - obtaining a contract - and completing a short sale
Note: This is not a solicitation of your listing if you are currently listed for sale with another Broker. If you are listed for sale with another Broker, please have them call us with regards to our highly successful Short Sale Listing Referral Program.
Under this program, your agent can have us take over the listing and still get paid a referral fee when the transaction closes. Talk about a win-win - you get a successful sale, avoid foreclosure on your home in the St. Louis/St. Charles area, and your agent gets paid for getting you connected to the best in the business in pre-foreclosure/short sale prevention. Refinance Your Home
In some cases, we can help you refinance your home to help you get caught up on back payments. Sometimes we can even LOWER the interest rate that you're currently paying, which will in turn LOWER your monthly payment. That may be all you need to get back on your feet. If you've seen some tough times lately, but now you have things back under control, a refinance may help you get a fresh start.
File for Bankruptcy Protection
We are not legal practitioners - and as such can not offer legal advice. Only an attorney can determine whether this option makes sense. We do know, however, that in most cases we've seen, the filing of bankruptcy only delays the foreclosure process. In fact, we have yet to see a case where the lender wasn't granted the right to foreclose by the bankruptcy court - sometimes as quickly as 91 days after filing.In addition, the best mortgage professionals in the St. Louis market have informed us that it would be far better for a borrower who was looking to purchase in the future to complete a sale or short sale, then file bankruptcy, only if absolutely necessary and the best option for them. The reason lies in the fact that with certain loan programs, including those offered by the Federal Housing Administration (FHA), allow a buyer who has filed for bankruptcy to get a mortgage in as little as 24 months following the successful completion of their bankruptcy case.
The combination of a foreclosure and a bankruptcy extend this period well beyond 24 months. Beware, you can NOT complete a short sale - your lender will be precluded by the provisions of the bankruptcy law - from working with you - if you file for bankruptcy. If you are considering filing for bankruptcy, please consult a reputable attorney. We'd be happy to discuss the best options - including completing a short sale before filing - with you and your attorney.
I've heard enough! I'm ready for Cottrell Realty Group to HELP ME!
Download short_sale_borrower_authorization3.pdf
By clicking on the above link ...you can download our lender authorization form. Just fill out the form (one for each loan/lender you have), sign and fax it over to 314-667-3536. This will allow us to call your lender and start figuring out your options! Keep in mind, this doesn't allow us to do anything other than contact your lender and inquire about your account. It's safe, completely confidential, and the best part? It's FREE!
Just remember, when facing foreclosure Time is of the Essence. You MUST act fast to protect your rights.
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