Paris and I had started the Real Estate Business back in the mid 1990’s. At that time, to present, there was not a need to be a Short Sale expert. With this current market we had to learn fast. We are in constant contact with attorneys that are our personal friends, clients, and business associates that are specialists in Bankruptcy and also Real Estate law. Yes a Real Estate Attorney and a Bankruptcy Attorney are very different from one another. We have heard it from those independent sources regarding both fields of endeavor. Both serve their masters and both need to be understood by a Real Estate agent that is offering advice. As you have probably have figured out, if you have read any of what Paris911 believes in, we love the "full disclosure" with regard to the advice we give and incorporate that in to our Real Estate Business Model.
It is extremely important before you sit down with someone offering "free" advice and or a "confidential" consultation, regarding the situation you find yourself in, that they are experts. This is not a job for the "new", "temporary", "part-time", "struggling" or "non-hacker" that does not pack the gear to carry you to the end zone.
This is for serious players of the game - Realtors that have served and protected the interests of those that had chosen that particular Realtor above and beyond their own selfish needs. There comes a time when a Realtor has to forget the commission and what the bank will pay, to best serve their clients. - Sometimes Bankruptcy is best, sometimes letting the home go to foreclosure is also better than a short sale. It depends on your circumstances. Call Connor MacIVOR at REMAX of Santa Clarita at 661.400.1720 or Paris MacIVOR at REMAX of Valencia at 661.400.3680 to come in and just talk to explore your options.
When the bill collectors are calling and you begin receiving increasingly nasty letters from your creditors, the naturally human impulse is to hide in your home, bar the doors, and screen the phone calls. After all, you don’t have the money to pay your bills, so what’s the point in talking these people?
First, realize that you have the power to make the calls and letters stop. According to the Federal Trade Commission’s Fair Debt Collection Practices Act, you can stop the harassing phone calls and letters by writing a letter to the debt collection agency asking them to stop. Once they receive the letter, they can contact you only once more to notify you that they will no longer contact you and to inform you of any actions they intend to take to collect the debt. This puts a stop only to the phone calls and letters – it doesn’t erase the debt.
Another way to put an end to the calls and letters, at least temporarily, is to file for bankruptcy. This is not to say you should file for bankruptcy, but if you have a lot of unsecured debt (such as credit card debt as opposed to a mortgage, which is secured by your home), filing for bankruptcy could be the best option. Upon filing for bankruptcy, the courts declare an automatic stay. This means that your creditors can no longer contact you regarding your debt. If they do call you, simply tell them that you filed for bankruptcy. They then have to work through the courts to collect their debt, rather than collecting directly from you.
Knowing that you have the power to make the phone calls and letters stop can give you some breathing room, but often the best option is to simply come clean with your creditors and find out from them what your options are. The longer you wait, the less time you have to negotiate a reasonable solution and payment plan.
Call any lenders who have a lien against your home (a first mortgage, second mortgage, home equity loan, construction loan, etc.). Let them know your situation and how much you can afford to pay per month. Don’t exaggerate how much you can pay. Give a realistic estimate, and see what they have to say. Ask the lender’s representative to explain all of your options:
- How long would they give you to sell the home and pay off the debt?
- Would they be willing to negotiate a short sale – accepting less than you currently owe as “payment in full?”
- How much would it cost to reinstate the loan – catch up on missed payments (plus any penalties and interest)?
- Would the bank be willing to negotiate a forbearance, in which you could catch up on back payments in installments?
- Is the bank willing to modify the mortgage – perhaps by increasing the term (stretching payments over a longer period of time)
- Decreasing the interest, forgiving a portion of the debt, or adding missed payments on to the end of the mortgage?
- Would the bank be willing to accept a deed in lieu of foreclosure, whereby you would provide the deed and keys for the home in exchange for having any remaining debt forgiven?
Once you have all of your options on the table, you can make a much better decision of how to proceed.
When discussing your options with the bank’s representative, remain calm, rational, and respectful, but firm. Advocate for yourself without becoming abusive. Otherwise, the person you’re dealing with may choose not to cooperate with you. Keep detailed notes of who you talked to, when, and what was said, so you can refer back to these notes if needed.
Ralph R. Roberts, GRI, CRS and his team of foreclosure experts regularly assist families facing foreclosure and have authored Foreclosure Self-Defense For Dummies (John Wiley & Sons).
Remember you have options. Options are what Paris911 is about, we want the best options to be know by you. We want you to exercise those options without stress or flaw. You are going to have enough to deal with besides someone wanting to push you a way that is reflective of their own selfish interests. Remember that you are the one that as to walk in your shoes - You have to carry the load - We want to show you how that load might be lightened up a bit - With Respect for You - Connor & Paris MacIVOR
We all sat and talked about what the plan was. We gave updates about where the market was, is and where we estimate it will be and why. The gentleman is in sales. Looking back I remember an accolade that he paid to me about him being in sales and having worked with several Real Estate Agents and how I was refreshingly different. We brought that up today as his wife and son were washing up after showing homes. I told him that I was extremely enamored with the complement. He was from New York and that complement coming from him was Gold to me!!!
