Have you fallen delinquent on your home mortgage and
want to sell your house and simply ‘walk-away’?
There is both a psychological and financial impact on you if you do ‘walk away’ and so this is something you must avoid!
Until now, there have been four (4) options available to homeowners facing a delinquency problem:
- Home Affordable Modification Program (HAMP) : The government Home Affordable Modification Program (HAMP) .The program is ill conceived at best – a disaster at worse with nearly a 99% failure rate according to the Wall Street Journal.
- Short Sale of the Property: The lender takes less then what is owed as a payoff then holds the seller for a deficiency for the difference or makes the seller hold a promissory note for some amount of the difference – this makes it impossible to find other suitable housing.
- Deed in Lieu of Foreclosure: Still destroys your credit score when you give the property back to save the lender cost. The lender still reports your credit as “deed in Lieu” which has the effect of lowering your credit score by about 150-200 points.
- Cash for Keys Program: Same as the Deed in Lieu of foreclosure only they get cash for deeding back your property. This has the same negative impact on your credit score.
There are now more than 2 million foreclosed properties in the USA, an indication that the above processes are not ideal … and in most cases, do not work.
There is a solution – a PROPRIETARY PROCESS which allows homeowners that have fallen delinquent on their home mortgages a way to legally ‘walk-away’ from their mortgage indebtedness without going into foreclosure, filing for bankruptcy or negatively impacting their credit score further.
This proprietary process includes:
Step 1: Property Assessment – there are certain property attributes required for qualification, including its potential for long term appreciation and / or rental stability and returns. (Many of the properties which have already been foreclosed would not qualify on these parameters.)
Step 2: Acquisition of Property Directly From Lenders – the property acquisition is facilitated directly by the group who acquire the promissory note from the lender and convey title into a trust thus reducing the seller’s debt. This group has established relationships with five (5) of the biggest lenders.
Step 3: Resale of Property – the group resells the property, and reports to all three credit bureaus that the seller’s mortgage was “settled in full”. This waives the deficiency that the seller would normally receive from their lender.
It creates a WIN – WIN situation for all parties:
- The bank is rid of a toxic asset.
- The seller can effectively walk away from an ‘under-water’ situation that was impossible to maintain … at NO cost to the seller and sometimes with cash payment back.
- The buyer – first home owner, upgrading home owner, or investor – has secured a property which has already been assessed as having good long term potential (capital appreciation and rental returns) by industry experts.
Contact me if you are experiencing difficulties and want to learn more about this process.