What Pacific Cove Realty Can Do for You

Negotiate with Your Lender

We firmly believe that just as most borrowers use a professional to initially get into a mortgage, it is in their best interest to do so if they are in the unfortunate position that they need to get out of a mortgage. At best, you only get one shot to negotiate your way out of foreclosure, and while it is certainly possible to negotiate with the lender yourself, it is highly unadvisable. Furthermore, the added stress of foreclosure in itself makes it
difficult for a homeowner to effectively and calmly negotiate their way out of foreclosure. Because we work with all lenders and represent homeowners from all across the country, and since we specialize in loss mitigation, we understand how to collect, prepare, and effectively present the information that lenders require to seriously consider a loss mitigation solution such as a short sale. We have excellent working relationships with the lenders’ loss mitigation departments and we will leverage our network and expertise to help you solve your problem.

Loan Modification

If you can currently make your regular payment, but you can’t catch up with the past-due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time. Or, if you are unable to make payments at this rate, we will negotiate
with your lender to extend your loan for a longer period of time, modifying the loan amount
to a more affordable level. A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.

Loan Refinance

Loan Forbearance

Under a loan forbearance agreement, you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender will then temporarily cease legal actions.
Lenders may typically agree to such an agreement if they believe you can bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We can negotiate with your lender to get you the
time you need to readjust your spending and recover financially.

Partial Claim (for FHA Loans Only)

If you have an FHA Loan, we will be able to start discussions with your lender for a Partial Claim. This strategy is only available on FHA loans. Working together with The Department of Housing and Urban Development (HUD), your lender will agree to help you with a one-time payment from the FHA Insurance Fund. You may qualify if your loan is:

• At least 4 months but no more than 12 months delinquent
• You are able to begin making full mortgage payments
• You have resolved the hardship that caused you to fall behind
• You may or may not be in Foreclosure
• The mortgagor has the long-term financial stability to support the mortgage debt or make the payment
• The home owner does not have the ability to repay the past due amount through a special forbearance or modification
• The property is your primary residence
• If you have filed for Bankruptcy you may still qualify for a partial claim, if the Bankruptcy Court gives its approval

Pre-Foreclosure Sale

If you are willing to sell your home or currently have your house on the market, some lenders might agree to put your foreclosure on hold while you attempt to sell your home through traditional real estate methods. You may be able to qualify if your mortgage is at least 2 months delinquent, you are able to sell your home within 3-5 months and your new appraisal shows that the value of your home meets HUD program guidelines. You will be able to pay off your mortgage loan to avoid foreclosure and prevent any damage to your credit rating.

Real Estate Short Sale

A short sale is an agreement with a lender allowing for the sale of a property to a third party for less than the amount owed on the mortgage. Under this agreement, the lender accepts less than the amount owed and releases the borrower from the mortgage, thereby preventing foreclosure.

Loan Forgiveness Under the New Housing Bill

It works like this: The lender has to forgive all the debt above 90 percent of the home's current appraised value. Here is a basic example:

Sometime before Jan. 1 this year, you bought a house for $125,000 and got an ARM for $110,000 after making a $15,000 down payment. But the house lost value. Now it's worth $100,000, based on an appraisal. Meanwhile, the ARM's rate went up and you can't afford
the full payment every month.

Under this law, the lender would forgive everything you owe above $90,000. Let's say that you owe $105,000 of that original $110,000 loan. The lender would forgive $15,000, and let you pay off the loan for $90,000. The lender would not be allowed to seek any of that $15,000 later.
That would enable you to find another lender who would underwrite a $90,000 mortgage to be insured by the FHA. That loan amount would include the upfront FHA insurance premium
of roughly $2,700.

Howver, there is a catch. If you participate in this program, you'll have to share your home-price appreciation with the FHA. If you sell the house (or refinance the loan) less than a year after refinancing into the FHA loan, the FHA gets all of the house price appreciation. The FHA's cut decreases over the next five years -- but it never goes below 50 percent.

What does this mean to the borrower? Let’s use the example above. You refinanced when the house was appraised at $100,000. A little over two years later, you sell the house for $120,000. You split that $20,000 difference with the FHA. In this case, because it's between two and three years later, the FHA gets 80 percent. The FHA would get $16,000 and you would get $4,000.