Success in avoiding an unnecessary foreclosure can take several forms. “Success” could be any of several things as long as the result fits your particular desires and goals. Success could mean:
- A short sale and no longer having any financial responsibility for the debt(s);
- A short sale and having a lot less liability than the other available scenarios;
- A short sale does not work out but you sign off on a Deed In Lieu of Foreclosure that rids you of all mortgage liability;
- Finding out you can save your home by filing a Chapter 13 or doing a loan modification;
- Finding out that in a Chapter 13 you can get rid of your second mortgage and keep your home by catching up on the first mortgage arrears over 3-5 years.
The Robert Russell Law Group has too many success stories to share them all here. Here are a few examples:
E. & S. in Vancouver. A few years ago, the seller’s home was valued at over $900K, but had decreased to a value of only $346K. The home had a very large second mortgage as well. The sellers were concerned that their property could not be sold as a short sale because they had not made a payment in 3 years and the home was in foreclosure.
RESULT: RRLG successfully negotiated a short sale. The first mortgage investor agreed to release the sellers from about $350K in remaining debt. The second mortgage company agreed to release the sellers from about $140K in remaining debt. Further, the sellers received $5K in seller incentives at closing. (Note: If the first mortgage creditor had foreclosed, the owners would have still owed on the $140K balance due on the second mortgage.)
J. & K. in Vancouver. The seller’s home had been vacant and listed for sale for more than 2 years. There were four liens against the home totaling over $1.4 Million. The home had decreased in value to $375K.
RESULT: RRLG successfully negotiated a full release of the debt of more than $300K from the first mortgage. The second mortgage lien was a Small Business Administration (SBA) loan for $812K – they accepted $8,500.00 and released their lien. The third and fourth liens also agreed to release the seller from the remaining debt owed in the approximate amount of $40K.
The listing real estate broker wrote:
“I personally would not have attempted to tackle a four loan short sale, but RRLG did and, through perseverance and tenacity, got it done and the transaction closed with all parties being happy with the results.”
T. in Vancouver. The property had been listed for sale for almost two years without an offer, and was in foreclosure. The seller owed $950K on the property.
RESULT: RRLG negotiated a deed in lieu of foreclosure with the servicing company. The homeowner surrendered the home and were released from the entire balance due on the $950K debt.
J. in Vancouver. Seller’s rental property had been listed for sale for more than two years without an offer. A foreclosure sale date was scheduled. This former million dollar property was now worth less than $700K. If the first mortgage creditor were to foreclose, the seller would be obligated on the unpaid balance on the $295K second mortgage. The seller had multiple rental properties and was considering bankruptcy to avoid any repayment demands.
RESULT: RRLG received short sale approval within 36 days of the offer being submitted. RRLG successfully negotiated an agreement by the first mortgage to accept 64% of their debt and release the seller of the remaining debt of more than $200K. The $295K second mortgage creditor accepted $30K (paid from the funds that would have gone to the first mortgage) and agreed to release the seller on the $250K balance due on the debt.
R. in Camas. The seller had many medical issues that caused a significant reduction in income. They owed $875K to the first mortgage; the mortgage creditor agreed to accept $606K at closing BUT they wanted a $100K promissory note to release the rest of the $235K debt.
RESULT: Instead of the requested $100K promissory note, RRLG negotiated a one-time seller cash payment of $10K to release the remaining $325K debt owed on the first mortgage. RRLG obtained this approval within 47 days after the offer was submitted.
C. in Ridgefield. The seller’s loan was insured by a private mortgage insuring company who required them to repay all or some part of the estimated claim loss of approximately $60K.
RESULT: RRLG negotiated a promissory note for $5K or 10% of their remaining balance and the private mortgage insuring company released them of the remaining debt of approximately $50K.
M. & A. in Vancouver. As many do, this transaction had real problems before arriving at RRLG’s office. The mortgage company erroneously closed the short sale file three times in the course of five months (thinking the short sale would not occur, among other things). The seller had relocated to California and had considered giving up and letting the property go into foreclosure.
RESULT: RRLG worked on this property for 342 days. The buyer’s exceptional patience paid off. RRLG negotiated a short sale that released the seller of all remaining debt due on the home.
Free Initial Consultation
The Robert Russell Law Group offers a free initial consultation for these matters. If you would like to know your options, please give us a call, email us, contact us or drop in and make an appointment.