FAQ from Your Real Estate Solution Radio Show (on hiatus):
Can you help me with a loan modification?
No, I can't because I'm not a party to the loan. So here's what you want to do: 1. Go to the note holder/lender/servicer who you are paying your mortgage to and ask to speak to a decision maker. 2. Tell them that you want to do a loan modification, what your hardship is, and how you can go about starting this process. 3. Make sure that you document everything (the person's name, phone number or extension, and everything they say). This is VERY IMPORTANT. 4. Get everything they agree to and you agree to in writing. *Do NOT pay any up front money or fees for a loan modification. *If you have a notice of default on your house, your time is limited. TIME IS OF THE ESSENCE. *Plan on waiting approximately 6-9 months for a reply, whether it be positive or negative. *You can’t do a loan modification if you can’t provide income documentation; your approval is partially based on your debt to income ratio.
Should I do a loan forbearance?
A forbearance allows you to delay or reduce payments for a short period of time. If you agree to a loan forbearance during the loan modification process, get everything in writing from your lender. Just remember that if you are denied your loan modification, you will most likely get a notice of default.
Why should I do a short sale?
There are three main reasons to do a short sale: 1. Protect your credit; a foreclosure will result in a 7-10 year negative on your credit, whereas a short sale will result in 18-24 months depending on your credit situation. 2. To avoid foreclosure, letting the bank post a public notice on your door, and taking your home. 3. To get your buying power back sooner.
General
Q: Are you selling something on your radio show?
Q: Why should I work with you instead of another realtor?
Q: Could you help me if I live in another state?
Q: Do you sell commercial properties as well as residential?
Short Sales & Foreclosures
Q: What makes you a short sale expert?
Q: What is the difference between a short sale and a foreclosure?
Q: How much does it cost to do a short sale?
Q: How do you get paid if I pay you nothing?
Q: Does the seller have to pay taxes on the mitigated losses?
Q: Why do a short sale as opposed to a loan modification?
Q: Why do a short sale instead of a foreclosure?
Q: How can someone get started with a short sale?
Q: What is the process of a short sale?
Q: If I sell my house as a short sale, could I stay in the house and rent it?
Q: In which states do you sell short sales?
Reverse Mortgage
Q: What is a Reverse Mortgage or Home Equity Conversion Mortgage (HECM), and how does it work?
Q: How do I get paid from a Reverse Mortgage?
Q: What are the features and benefits of a Reverse Mortgage?
Q: What is the cost of a Reverse Mortgage?
Q: Can I really purchase a house with a Home Equity Conversion Mortgage?
Bankruptcy
Q: What will happen if I just claim bankruptcy?
Q: What are the different types of bankruptcy?
General
A: I have been licensed and selling real estate for over 25 years, in the Greater Los Angeles area as well as the entire state of California. I also am an experienced commercial and residential real estate investor. Read more of MY STORY.
A: Right now history is being made in the United States. The banks are overwhelmed with the amount of option arm loans coming due, non performing loans in their inventory, and people who just aren’t able to make their house payments. If these homeowners do nothing, they will be forced into foreclosure. It is my job to help these people make the best decision, with the least amount of emotional pain and financial wreckage.
Q: Are you selling something on your radio show?
A: No. I am not a radio host, and I do not lead seminars. I have no books or cd sets I’m trying to sell. My sole purpose for doing a radio show is to let the masses know there is help available for them, for free. I am a real estate agent. I do short sales, sell houses and help people out. I call people back when they call me. PEOPLE NEED HELP ACROSS THE NATION!
Q: Why should I work with you instead of another realtor?
A: Because I care what happens to you and I have been holding hands in this business for so many years. You will not find a more POWERFUL and SUCCESSFUL team of negotiators than my team. The disclosures and laws are so very important and critical, which we are extremely familiar with, and my associates are I am equipped to help people all over the nation…sellers and buyers. You are my priority...period!
Q: Could you help me if I live in another state?
A: Absolutely! I have excellent, dedicated and knowledgeable associates in all states who are ready to help you.
Q: Do you sell commercial properties as well as residential?
A: Absolutely.
Q: Do you work with multi-lingual clients?
A: Absolutely. I network with agents who speak several different languages.
Short Sales & Foreclosures
Q: What makes you a short sale expert?
A: I began handling short sales in 1994 after the Northridge earthquake. There weren’t very many experts around so I immersed myself in research and even wrote a manual, out of shear frustration. I became known as the “go to” person for short sales. For years I have been helping other agents handle their short sales, and even working them if the agents just don’t feel knowledgeable enough or competent enough.
Q: What is the true definition of a foreclosure and a short sale?
A: A foreclosure is a situation in which a homeowner is unable to make their house payments/mortgage payments, so the lender who holds the note, will file a notice of default (depending on the state in which the house is located). In California, the lien holder must wait for 90 days before they can set a sale date. No sooner than 20 days after the 90 day period can a trustee sale be set. When the trustee sale date is set, the home will be sold at public auction for the amount of the debt plus foreclosure costs. So, a non-judicial foreclosure can take up to 120 days from the recordation of the NOD. Again, it varies from state to state. In some states, a Lis Pendens is filed, which is a law suite against the borrower.
In some cases, to avoid foreclosing on a home, creditors try to make adjustments to the repayment schedule to allow the homeowner to retain ownership. This situation is known as a special forbearance or mortgage (loan) modification.
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage/loan on their property, but the lender decides that selling the property at a moderate loss is better and less costly than foreclosing on the property. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and a poorer credit report outcome for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency or deficiency judgment. Generally, in this down market climate, the borrower is relieved of any further liability, but it does vary from state to state and lender to lender. Usually, the mortgage holder/servicer will issue a 1099 C for the difference between what the property was sold for and what the borrower owes.
Q: How much does it cost to do a short sale?
A: It costs the seller absolutely nothing. The banks me pay for selling the short sale and successfully closing.
A: The bank/primary lender or servicer pays the commission on a short sale.
Q: Does the seller have to pay taxes on the mitigated losses?
A: Federally, not anymore. There used to be a state tax on the loss in California, but Governor Schwarzenegger recently passed a bill ratifying this law. However, if you are in a state other than California, you need to check on your state laws. If the house has been your principal residence for the past 2 years, you won’t be taxed on the difference. There are more exceptions, such as insolvency. You should check with your licensed realtor or give me a call and I will have a member of my team, or myself, help you.
Q: Why do a short sale as opposed to a loan modification?
A: Statistically, only about 5% of loan modifications are successful, meaning that the borrower was able to make all of payments during the probation period (usually a 3 month probation). The risk of trying a loan modification will threaten the length of time a person has between the time they received an NOD (notice of default) or a Lis Pendens has been filed, and the actual sale date that has been set by the bank. Some banks are more lenient than others, especially these days when short sales are becoming so prevalent. Also, many loan servicers/lenders are offering relocation costs to the borrower. The amount of relocation expenses varies from bank to bank and depends on whether the homeowner has applied for, and been denied a loan modification.
Q: Why do a short sale instead of a foreclosure?
A: To maintain control, save your credit, and reduce the time in which you will get your buying power back. The rules are changing on a daily basis, but that’s the general idea. Also, that’s why it is so important to work with a licensed realtor. The associates I work with are informed!
Q: How can someone get started with a short sale?
A: Just call me at 800-518-MARY or 800-518-6279.
A: Short version: You call me, I list your house either through myself or an associate in your state, a buyer buys your house after we make certain the buyer is well qualified to purchase your home, you sign the purchase agreement from the buyer, my team of negotiators negotiate with the bank for you, we close on your house, you are free to move on.
A: Long version: In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer and in writing from the lien holder.
Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount they are willing to accept by determining the probable selling price from an appraisal or Broker’s Price Opinion (BPO).
Lenders may accept short sale offers or requests for short sales even if a Notice of Default/Lis Pendens has not been issued or recorded, depending on where the property is located and the reason for selling. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the 2009 foreclosure crisis, they are now more willing to accept short sales than ever before. This presents an opportunity for "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure as a result.
Q: If I sell my house as a short sale, could I stay in the house and rent it?
A: No.
A: No. It's defrauding the lender.
Q: In which states do you sell short sales?
A: In all states I sell short sales and conventional sales. I have teams of professionals and specialists set up throughout the United States.
Reverse Mortgage
Q: What is a Reverse Mortgage or Home Equity Conversion Mortgage (HECM), and how does it work?
Q: How do I get paid from a Reverse Mortgage?
A: Your choice of lump sum, monthly installments until the loan matures, monthly cash installments for a fixed number of months, line of credit, or a combination of any of the previous.
Q: What are the features and benefits of a Reverse Mortgage?
A: *Unused line of credit increases monthly. *Potentially refinance the loan with a reduced up-front mortgage insurance premium. *
Q: What is the cost of a Reverse Mortgage?
A: Origination fee is the greater sum of $2,500 or 2% of initial $200,000 maximum claim amount and 1% on the balance thereafter with a cap of $6,000. *
A: You are still responsible for property insurance and for paying your ongoing property taxes. *In order to get all of your questions answered, you should definitely call a reverse mortgage loan officer. If you don’t know of any, please contact me.
Q: Can I really purchase a house with a Home Equity Conversion Mortgage?
A: Absolutely, but there are guidelines to follow.
A: Generally, you find a house as defined by HUD, but not a second home or investment property. *
Bankruptcy
A: It depends on which bankruptcy you file for, but it’s a method of relieving yourself of debt.
Q: What will happen if I just claim bankruptcy?
A: Each case is so different and should be handled appropriately, depending on your financial situation and other factors. I’m not an attorney or CPA, but do work with the best real estate CPA/accountants and attorneys in the country. Contact me if you would like to be put in touch with one.
Q: What are the different types of bankruptcy?
A: Chapter 7 bankruptcy is a liquidation proceeding in which the debtor’s non-exempt assets, if any, are sold by the Chapter 7 trustee and the proceeds distributed to creditors according to the priorities spelled out in the Code.
Chapter 11 bankruptcy is a form of reorganization available to corporations, partnerships and individuals. There is no limit on the amount of debt, as there is in 13.
Chapter 13 bankruptcy is a repayment plan that protects the debtor from collection action during the case and discharges any unpaid balance of dischargeable debts at the end of the plan.
*There is so much more information involved in each Chapter regarding the “means test”, exemptions, discharges, automatic stay, trustee, avoidable transfers, adversary proceeding, etc. that I strongly advise you to contact a good bankruptcy attorney. If you don’t know of one, please contact me.
I am a Midwest gal, born and raised in Wisconsin. After completing a couple years at the University of Wisconsin, I followed my desire to see the world and became a flight attendant for Northwest Orient Airlines. In my late 20’s, I moved to California, met and married my Hollywood native husband. We just celebrated our 40th wedding anniversary and are best friends. We have two daughters, both in their thirties, two beautiful grandchildren, and our family is extremely close.
When my daughters were old enough to not need me at home full time, I followed my passion and obtained my real estate license. After 25 years in the business, my passion has grown exponentially and I am enthralled by the unusual cases I encounter. Nothing gives me more satisfaction than helping people, and I truly love what I do. The devastation of the 1994 Northridge earthquake resulted in a market of foreclosures and short sales. Not many realtors were familiar with the short sale process and in all honesty, handling a short sale was an absolute nightmare. The banks were uncooperative and some of the cases I worked lasted anywhere between 9 months to 2 years! Still, I was willing to do double the work for a fraction of the pay. Out of frustration I wrote a short sale manual and became known as the “go to” short sale specialist. Other realtors were handing me their short sales because they knew I would see them through and take care of their clients.
Today an epidemic of wreckage is happening on a national level, reflective of what happened in the early 90’s in the local Los Angeles area. People are now facing the reality of their option arm loans adjusting, which is forcing them to deal with a substantial increase in their monthly mortgage dollar amounts. With unemployment on the rise in this current economy, lack of income means inability to make house payments, plus there are still more foreclosures the banks are sitting on. Since this is an arena I am very familiar with, I have dedicated myself to helping as many people out of trouble as possible. In order to help literally thousands escape the nightmare of foreclosure, I have put together a team of real estate experts in all 50 states, plus a power team of short sale negotiators to handle the volume. Choosing to do a short sale with an expert, in lieu of being forced to go through foreclosure by the bank, gives people a better and quicker chance of rebuilding their lives.
The best way I could think of reaching people is to put my message out to the masses. Hence, I have launched “Your Real Estate Solution” radio show.
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Prudential California Realty
Lic. # • 00880334, CA
Phone: 818-414-7119 • Email: maryburak@att.net
