FAQ
Frequently Asked Questions
What do I do if I'm behind on my mortgage payments?
You do have options. Equity Negotiations can help. First give us a call and let us know about your individual situation. We will need details like how the hardship started, who your lender(s) are, and the last communication you have had with the lender.
What are the advantages of a Short Sale?
A short sale can minimize damaging effects on your credit and your limit your financial exposure and liability. A foreclosure can remain on your credit for more than seven years! A short sale will report on your credit as "settled debt" or look similar to a paid collection write off. You credit score will be impacted, but it will recover more quickly so that when your finances are back in order and you are ready to purchase another home in a much shorter time frame. The time frame will vary depending on the rest of your credit history and the type of mortgage you apply for next.
Why would my lender agree to a short sale or loan modification?
A foreclosure is a last resort for all parties involved. In most scenarios both the lender and the homeowner want to avoid foreclosure at all costs. This is why in the past few years during the housing slump lenders have created several different options to offer their clients to avoid foreclosure. A short sale or loan modification give the lender the ability to protect its asset (your home) and even more potential fees and damage in the future. In short, a loan modification helps maintain the homeowner in the home and prevents the expense of a foreclosure, and a Short Sale saves the lender the expense of attorney's fees for the foreclosure process.
What is my potential liablity after completing either of these options?
There are several potential tax liability considerations that will need to be made in either of these processes ( but usually lesser than if you let the home go to foreclosure). We always encourage our clients to speak with their personal tax professionals to see what if any additional taxes they may owe for their home. It is important to note that if you meet certain criteria, the IRS does have relief programs for those who qualify. In some states and with certain types of loans the lender may have recourse to pursue a "deficiency judgement" for the difference that the property is sold for. The lender will disclose if this is a possibility during your transaction process. Equity negotiations works to eliminate these factors and potential liabilities for our clients, and ALWAYS recommends legal counsel if we feel our clients are at risk.
Will you work with my real estate agent or must I use a realtor from your network?
We are always up for working with new agents, as long as they agree to conform to our standard rules and requirements. We also have an experienced team of local realtors who are professional, friendly and ready to meet our client's needs if they are not currently working with an agent.
How much will a short sale or loan modification cost?
Unlike other modification companies Equity Negotiations provides our short sale negotiation services to homeowners at no cost! Loan Modifications vary depending on the amount of work that needs to be performed ( how many lenders we will need to work with) and the payment options that will work best for our clients. We always let our clients know up front our costs, and that they do have the ability to negotiate their modifications for FREE with their lenders themselves. Often our clients use our services after being frustrated with poor communication with their lender, not knowing what paperwork to send, and not having the time to devote to working on the negotiations themselves.
How do I get started?
AS SOON AS POSSIBLE! Please call in and set up your consultation so that we can get started with helping you towards a better financial future.