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Today you are in control of what will come tomorrow
SHORT SALE
Most lenders are in the money business and would rather not own real estate. If the value of the property has decreased, some lenders cooperate
and allow a sale of the property, instead of forcing a foreclosure. If the debt is greater than the property's value, in order to sell it and turn the
lender's interest into cash, the lender must agree to accept less than full payment as satisfaction of the debt. Many lenders realize that some money
soon is better than less money (since foreclosure auctions usually bring low prices) later, especially if the debt continues to increase during the
pend ency of the foreclosure.
Most lenders are in the money business and would rather not own real estate. If the value of the property has decreased, some lenders cooperate
and allow a sale of the property, instead of forcing a foreclosure. If the debt is greater than the property's value, in order to sell it and turn the
lender's interest into cash, the lender must agree to accept less than full payment as satisfaction of the debt. Many lenders realize that some money
soon is better than less money (since foreclosure auctions usually bring low prices) later, especially if the debt continues to increase during the
pend ency of the foreclosure.
FSBO: "For Sale By Owner."
Why not try to save 6% of the sales price of your home? How hard can it be to sell it yourself?
There are 4 basic problems:
Determining the right sales price;
Reaching a wide market without access to Multiple Listing Service; and
Drafting sales documents to ensure that you comply with all appropriate State laws and protect your rights.
Buyers try to negotiate the savings away.
Why not try to save 6% of the sales price of your home? How hard can it be to sell it yourself?
There are 4 basic problems:
Determining the right sales price;
Reaching a wide market without access to Multiple Listing Service; and
Drafting sales documents to ensure that you comply with all appropriate State laws and protect your rights.
Buyers try to negotiate the savings away.
Publication Period
California foreclosure law states that the publication period begins once the redemption period has expired. A Notice of Trustee's Sale is prepared
and published in an adjudicated paper of general circulation in the city in which the property is located. The Notice of Trustee's Sale is published
one time per week for three weeks. The actual Sale is established by adding at least 20 days to the date that the Notice of Trustee's Sale was first
published in the newspaper. The Notice of Trustee's Sale is posted on the property and in a public place. At least 14 days period to Sale date the
Notice of Trustee's Sale must be recorded in the county in which the property is located.
Trustee's Sale
California foreclosure law states that on the day that was established for sale of the property, and only after all publication period requirements
have been met, the property is sold to the highest bidder for cash for the full amount of the debt plus foreclosure fee and expenses. If no one bids
at the Trustee's Sale, the property automatically reverts back to the beneficiary for the debt. A Trustee's Deed Upon Sale is recorded in the county
in which the property is located transferring title to the foreclosing beneficiary allowing the marketing of the property to recover their debt.
All sales under a power of sale in a deed of trust will be made between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday
through Friday, at the time specified in the notice of trustee sale. The sale must be made a public auction to the highest bidder. The trustee has the
right to require every bidder to show evidence of ability to pay the full bid in cash, cashieró check or certain bank checks. Each bid is by law an
irrevocable offer to purchase. However, a higher bid cancels an earlier bid. It is unlawful and a criminal offense (a fine of $10,000 or up to one
year in jail) to offer anyone consideration not to bid, or to fix or restrain the bidding process in any manner. Debtors may reinstate up to five days
before non-judicial foreclosure sale.
Junior lien holders may no longer redeem, so they may try to protect themselves by (1) advancing funds to bring the senior loan payments
current, then foreclosing for the sums advanced; (2) bidding at the foreclosure sale so the price will be sufficient to pay off the senior and the
junior liens; or (3) acquire the property by bidding at the foreclosure. If the debtor has a right to redeem and does so, the junior who purchased
the home must be reimbursed. Junior liens do not reattach the property if a borrower redeems a senior lien whose foreclosure extinguished the
junior. This helps borrowers by encouraging the junior to bid up to the property to fair market value at the foreclosure sale, or else lose out, giving
borrowers closer to fair value at sale.
Lenders may not seek a deficiency judgment if (1) the foreclosure is non-judicial or if (2) foreclosure is on a purchase money obligation. The
same rules do not apply to guarantee or later lien holders. The lenders may seize alternative collateral. If the lender forecloses by filing a lawsuit,
then the lender can obtain both a foreclosure sale order and a judgment against the borrower for a deficiency after the court-ordered sale, but only
for the difference between the judgment and the fair value of the security.
Pre-foreclosure sale
allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.
California foreclosure law states that the publication period begins once the redemption period has expired. A Notice of Trustee's Sale is prepared
and published in an adjudicated paper of general circulation in the city in which the property is located. The Notice of Trustee's Sale is published
one time per week for three weeks. The actual Sale is established by adding at least 20 days to the date that the Notice of Trustee's Sale was first
published in the newspaper. The Notice of Trustee's Sale is posted on the property and in a public place. At least 14 days period to Sale date the
Notice of Trustee's Sale must be recorded in the county in which the property is located.
Trustee's Sale
California foreclosure law states that on the day that was established for sale of the property, and only after all publication period requirements
have been met, the property is sold to the highest bidder for cash for the full amount of the debt plus foreclosure fee and expenses. If no one bids
at the Trustee's Sale, the property automatically reverts back to the beneficiary for the debt. A Trustee's Deed Upon Sale is recorded in the county
in which the property is located transferring title to the foreclosing beneficiary allowing the marketing of the property to recover their debt.
All sales under a power of sale in a deed of trust will be made between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday
through Friday, at the time specified in the notice of trustee sale. The sale must be made a public auction to the highest bidder. The trustee has the
right to require every bidder to show evidence of ability to pay the full bid in cash, cashieró check or certain bank checks. Each bid is by law an
irrevocable offer to purchase. However, a higher bid cancels an earlier bid. It is unlawful and a criminal offense (a fine of $10,000 or up to one
year in jail) to offer anyone consideration not to bid, or to fix or restrain the bidding process in any manner. Debtors may reinstate up to five days
before non-judicial foreclosure sale.
Junior lien holders may no longer redeem, so they may try to protect themselves by (1) advancing funds to bring the senior loan payments
current, then foreclosing for the sums advanced; (2) bidding at the foreclosure sale so the price will be sufficient to pay off the senior and the
junior liens; or (3) acquire the property by bidding at the foreclosure. If the debtor has a right to redeem and does so, the junior who purchased
the home must be reimbursed. Junior liens do not reattach the property if a borrower redeems a senior lien whose foreclosure extinguished the
junior. This helps borrowers by encouraging the junior to bid up to the property to fair market value at the foreclosure sale, or else lose out, giving
borrowers closer to fair value at sale.
Lenders may not seek a deficiency judgment if (1) the foreclosure is non-judicial or if (2) foreclosure is on a purchase money obligation. The
same rules do not apply to guarantee or later lien holders. The lenders may seize alternative collateral. If the lender forecloses by filing a lawsuit,
then the lender can obtain both a foreclosure sale order and a judgment against the borrower for a deficiency after the court-ordered sale, but only
for the difference between the judgment and the fair value of the security.
Pre-foreclosure sale
allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.
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Auction
Auction of any asset should include at least the following eight elements:
1- A viable market: If there is not a viable market of interested, qualified buyers, there is no chance of a professional Auction succeeding
2- Auctioneer: A competent, trained person taking full responsibility for formulating and executing the overall plan
3- marketing plan: A strong campaign with “target marketing” to the appropriate audience
4- Good exposure to the proper market: Enough time prior to Auction Day for the buyers to find out about the Auction and do their due diligence
regarding the assets for Auction
5- A public preview: Ample opportunity for public viewing and inspection prior to bidding
6- Published terms and conditions: Clear, concise, fair rules of the Auction that apply to all participants
7- Full disclosure: Disclosure to all interested parties of the facts pertaining to the assets up for Auction
8- Public Auction: On the advertised date and time, all qualified bidders or their proxies assemble and have the opportunity to bid competitively until
there are no more bids remaining.
Auction of any asset should include at least the following eight elements:
1- A viable market: If there is not a viable market of interested, qualified buyers, there is no chance of a professional Auction succeeding
2- Auctioneer: A competent, trained person taking full responsibility for formulating and executing the overall plan
3- marketing plan: A strong campaign with “target marketing” to the appropriate audience
4- Good exposure to the proper market: Enough time prior to Auction Day for the buyers to find out about the Auction and do their due diligence
regarding the assets for Auction
5- A public preview: Ample opportunity for public viewing and inspection prior to bidding
6- Published terms and conditions: Clear, concise, fair rules of the Auction that apply to all participants
7- Full disclosure: Disclosure to all interested parties of the facts pertaining to the assets up for Auction
8- Public Auction: On the advertised date and time, all qualified bidders or their proxies assemble and have the opportunity to bid competitively until
there are no more bids remaining.
REO
REO is an abbreviation for a REAL ESTATE OWNED property. The term REO can be used ambiguously, to describe a specific type of property,
but in real estate the phrase real estate owned property indicates that the property in question has been foreclosed on and has been taken back by
the mortgage lender or trustee. REOs and FORECLOSUREs are not the same thing, however an REO is only produced as a result of an
unsuccessful foreclosure, in which a buyer for the property cannot be found, and so the mortgage lender repossesses the property to sell
separately.
REO is an abbreviation for a REAL ESTATE OWNED property. The term REO can be used ambiguously, to describe a specific type of property,
but in real estate the phrase real estate owned property indicates that the property in question has been foreclosed on and has been taken back by
the mortgage lender or trustee. REOs and FORECLOSUREs are not the same thing, however an REO is only produced as a result of an
unsuccessful foreclosure, in which a buyer for the property cannot be found, and so the mortgage lender repossesses the property to sell
separately.
Reinstatement of Loan (Cure):
This option is paying the lender everything that is owed in one lump sum to include missed payments, any late fees associated with these
payments, foreclosure fees, legal fees and the principal owed during the delinquency. A cure may involve the seller curing or deeding it to the
investor "subject to" the existing loans, who will cure. There is a risk to the homeowner that the lender may accelerate the loan because of the
due-on-sale, and the homeowner no longer owns the property and has no recourse of the investor doesn't pay the loans.
"Subject To"
A buyer takes over the existing loan payments, without notifying the lender. The buyer assumes no personal liability for the loan. Loan should be
assumable in order to this.
Lease back option to purchase
A lease back option (LBO) is where an investor purchase the home for the Equity,lease the property back to home owner as a tenant for 12
months or less while the home owner resolved the hardship. At the end of the established leasing period, the home owner then purchase back the
home from the investor at the higher price that what the investor purchased the home for. Sometimes you will see the combination of both.
This option is paying the lender everything that is owed in one lump sum to include missed payments, any late fees associated with these
payments, foreclosure fees, legal fees and the principal owed during the delinquency. A cure may involve the seller curing or deeding it to the
investor "subject to" the existing loans, who will cure. There is a risk to the homeowner that the lender may accelerate the loan because of the
due-on-sale, and the homeowner no longer owns the property and has no recourse of the investor doesn't pay the loans.
"Subject To"
A buyer takes over the existing loan payments, without notifying the lender. The buyer assumes no personal liability for the loan. Loan should be
assumable in order to this.
Lease back option to purchase
A lease back option (LBO) is where an investor purchase the home for the Equity,lease the property back to home owner as a tenant for 12
months or less while the home owner resolved the hardship. At the end of the established leasing period, the home owner then purchase back the
home from the investor at the higher price that what the investor purchased the home for. Sometimes you will see the combination of both.
Forbearance
We will be able to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of
employment.
Equity
The difference between the appraised value and the loan.
Equity buildup
The gradual increase of the borrower’s equity in a property caused by amortization of loan principal.
Equity of redemption
Also known as the right of redemption; the right of a debtor, before a foreclosure sale, to reclaim property that had been given up due to mortgage
default
We will be able to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of
employment.
Equity
The difference between the appraised value and the loan.
Equity buildup
The gradual increase of the borrower’s equity in a property caused by amortization of loan principal.
Equity of redemption
Also known as the right of redemption; the right of a debtor, before a foreclosure sale, to reclaim property that had been given up due to mortgage
default