- You can get your life back on track after a short sale. One of the first things you’ll want is to start repairing your credit. But, how do you get those pesky collections off your report? I’ll show you a couple of techniques here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Collections can be very easy to remove. The reason is that most collection accounts have been transferred several times. The original lender gave it to a collection agency for 6 months. The collection agency couldn’t collect. Then, the original lender gave it to another collection agency. They couldn’t collect it either.

So they finally sold it to a debt buyer for three to five cents on the dollar. The debt buyer wrote them a check. But, the paperwork hardly ever gets transferred over properly. Here is the first step.

Dispute it with the credit bureaus. You may not agree that it is your collection. That will take 30-45 days to process. It will often clear up the problem.

Then, dispute it with the debt buyer (or collection agency) noted on your report. You can’t dispute with them until you have disputed with the credit bureaus first. Request an investigation. They have 30 days to respond. Most will not have documentation.

They may send you documentation. But, it isn’t very specific. If that happens, then ask for specific documentation. I would ask for a copy of a document that is signed by the company that sold them the debt. The document should clearly state all your account information.

It should have the account number, your information and address, and the amount owed. In addition, it should be signed by the president of the company. That is the burden of proof I would request. I doubt they would have something like that.

If the techniques above don’t work (that will be rare), then settle the debt. Pay them from five to twenty cents on the dollar. They agree to report to the credit agencies as “paid as settled.” You get what you want and they get a little money. Everyone wins.

Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Send me an e-mail at paul@paulflores.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-863-8939.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Paul Flores.

Paul is a Real Estate Broker at Re/Max Metro Real Estate Services.

Phone: 714-863-8939. paul@paulflores.com.

?

View My homes for sale at www.paulflores.com.

Short Sale Realtor. Short Sales. Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

- If you are upside down, then you might be tempted to walk away. You’ll mail your keys to the lender and move out. Before you move out, I have some important information to tell you. You should stay in the house for as long as possible.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

In fact, the average length of time you can live for free is 461 days. That number is a statistic I’ve seen lots of people throw around. I just tried to Google the official source, but it isn’t coming up in several searches. I do know that number is true, based on all of the foreclosures I’ve seen recently.

Many lenders take around 12 months to file foreclosure. Then, the foreclosure process can last 6-12 months, if not longer. Here is the bottom line: Don’t move out as soon as you get behind. Stay in the house and save the money you would be spending on rent.

After the lender forecloses you will have to worry about them pursuing you for the money they lost. So, you’ve decided to walk away, but you want to reduce the side effects? You can avoid a lot of the bad side effects with a short sale.

First off, on 80-90% of all short sales, you won’t have to pay any money back. Second, you will be eligible to buy another house in 2-3 years (You have to wait 5-7 years after a foreclosure.) Third, a short sale costs you nothing.

When the home sells, your lender pays us a commission. THe lenders know they get more money from a short sale than a foreclosure. This is why most lenders are willing to pay all the other costs associated with the sale. I’ll show you how to short sale your property and never pay the bank another penny.

Send me an e-mail at paul@paulflores.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-863-8939.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Paul Flores.

Paul is a Real Estate Broker at Re/Max Metro Real Estate Services.

Phone: 714-863-8939. paul@paulflores.com.

?

View My homes for sale at www.paulflores.com.

Short Sale Realtor. Short Sales. Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

- Many agents run into problems with short sales that have more than one mortgage. For example, we had a short sale with a first mortgage, a second mortgage, and a third lien. The third lien was an old credit card judgment. It had to be paid off to sell the house. Here is what happened.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The first mortgage was only willing to pay $3,000 to any second mortgages or liens. The second mortgage wanted $4,500. The credit card judgment wanted $5,000. How were we going to get the extra money for them?

I had to escalate the file with the first mortgage. I told them that they had two options. Option one: Pay the first and second mortgage and net X. Option two: Foreclose and net X minus $15,000. I have a calculator that puts all these numbers together. In addition, I have the proof to back it up.

Here is an example of that proof. There was recent short sale where the first mortgage stubbornly refused to give enough money to the second mortgage. As a result, they lost around $45,000.

I found out about this house because I met the first buyers at an Open House. They were trying to buy a short sale and were offering $272,000. The first mortgage was RBC, owed $337,500. The 2nd was Bank of America, owed 70k. The listing agent submitted the short sale offer to both companies. RBC said they would only pay $1,000 to the second mortgage. The second mortgage wanted more.

The short sale dragged out for months. Finally the buyer paying $272,000 walked. The listing agent put the house back on the market. The housing market had declined. Now the only offers she could get were around $230,000. The house ended up selling for $229,000.

RBC was greedy and wouldn’t offer enough money to BOA. As a result, they lost around $45,000. Was that a smart business decision? I don’t think so. Now, back to my short sale story.

I sent this and several other similar examples to the people at the first mortgage. They agreed to pay the second mortgage $3,000 and completely pay off the credit card judgment. The buyer agreed to pay the extra money the second mortgage wanted.

So we got the short sale closed. The seller was able to wipe out over $70,000 in upside down debt and move on with her life. Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Send me an e-mail at paul@paulflores.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-863-8939.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Paul Flores.

Paul is a Real Estate Broker at Re/Max Metro Real Estate Services.

Phone: 714-863-8939. paul@paulflores.com.

?

View My homes for sale at www.paulflores.com.

Short Sale Realtor. Short Sales. Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

- I had a negotiator at one of the largest lenders in the US try to push me around last week. I’ve spent the last 12 months figuring out all the rules for different loan owners, or insurers. I’m talking about FHA, VA, Fannie Mae, Freddie Mac, and “sliced and diced.”

You see, the people who own the loan (Fannie Mae, Freddie Mac, or “Sliced and Diced”) make the rules for a Gainesville Short Sale. The one other common parties that makes the rules are the federal mortgage insurers, FHA, VA, and USDA. I’ve done a lot of research and figured out all their rules.

80% of all loans are owned or insured by someone other than the company handling them. That means in most cases, Wells Fargo, Bank of America, or JP Morgan Chase are acting on behalf of the actual owner (or insurer) of the loan. This entity makes the rules. That makes getting short sales approved much easier.

This was an FHA loan, which means FHA’s guidelines dictate whether or not the short sale is approved. Here’s what happened.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

FHA puts out a letter called “Mortgagee Letter 2008-43.” It details exactly how the lender servicing an FHA loan is supposed to negotiate on a short sale. This letter is 16 pages long and gives them specific directions on what percentage of the appraisal they can accept, how much to pay agents, etc.

Because of a prior experience, I had read thru this letter 2-3 times. Bottom line, I know a little bit about FHA’s rules for short sales. The problem was the short sale negotiator didn’t want to follow the rules!

Instead she made up her own rules! She told me that the buyer and seller had to split the cost of the title insurance. However, page 12 of Mortgage Letter 2008-43, says that they are allowed to pay the standard title insurance costs. In our area, the sale’s contracts are written with the seller paying for title insurance.

But, this negotiator didn’t want to allow that rule. I had to argue back and forth with her for 2-3 days until she finally relented. Here is the problem I have with these lenders.

If your investor gives you specific instructions on how to negotiate a short sale, then follow those instructions! If you are short selling, make sure you agent understands the rules laid out by the owner or insurer of your loan. That way, if a negotiator tries to break the rules, then they can keep them in line.

If a negotiator is lying to them, they can ask for their manager. When they talk to the manager, they will explain how they are breaking the rules. Your agent can even contact the investor or insurer directly and tell them about the problem.

Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Call me at 714-863-8939 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at paul@paulflores.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Paul Flores.

Paul is a Real Estate Broker at Re/Max Metro Real Estate Services.

Phone: 714-863-8939. paul@paulflores.com.

?

View My homes for sale at www.paulflores.com.

Short Sale Realtor. Short Sales. Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

- You can dispute negative items on your credit. In some cases, the negative item can go away in 30-60 days. This doesn’t always happen, but it’s nice when it does. This may seem overwhelming at first. But stick with it and you’ll see that it does work. With a little persistence, most items can be removed permanently.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

You are considered innocent until proven guilty. That means it is the credit bureaus job to determine if a negative item should stay on your report. Many people have inaccurate information on their reports.

Federal law says that you can dispute anything in your report. We recommend you send a detailed letter by certified mail to the credit bureau. Yes, you can dispute online, but we don’t recommend that. Why? There is no paper trail.

Your letter should have detailed info on your dispute. Put in your name and address. In addition, identify each item you are disputing. Say why you are disputing it and ask them to remove it from your report. File copies of the letter, envelope, and certified mail receipt. You can even mail return receipt requested. Then you have proof they received your letter.

The bureaus have 30 days after they receive a dispute to investigate it. If they can’t verify the negative item, then they must remove it from your record. Credit bureaus issue a lot of requests for verification to lenders every day. The people at the lenders get backed up.

Files get misplaced. Banks and lenders are sold, merged, or go bankrupt. (Everything gets misplaced then) As you can see, not all disputes get a reply. This works to your benefit. If the credit bureau doesn’t get a response, then they have to remove the item.

Everything negative on your report can be disputed, even info that is correct. Do not give too much information to the bureau. We recommend that you mark the item you are disputing. Then state why you are disputing it. Nothing more is needed. If you give them lots of info, they may use that info to verify they item.

One more tip: After mailing a dispute letter, let the issue sit for 45-60 days before disputing it again. If you contact the credit bureau again in the 30 day window, they can automatically extend it for 30 days from that date. That gives the bureau more time to verify the item.

Here are a few reasons you can dispute a negative item.

1. Not my account.

2. Wrong Credit Limit.

3. Wrong Account Number.

4. Wrong date of last activity.

5. The Judge gave the account to my ex in the divorce. Be sure to send them a copy of the divorce decree.

6. I paid on time that month.

This all means that you can get your life back to normal after a short sale. You can get rid of the debt, repair your credit, and get your life back to normal. Do you want to short sale your property and never pay the bank another penny? I can help you do that.

Call me at 714-863-8939 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at paul@paulflores.com.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Paul Flores.

Paul is a Real Estate Broker at Re/Max Metro Real Estate Services.

Phone: 714-863-8939. paul@paulflores.com.

?

View My homes for sale at www.paulflores.com.

Short Sale Realtor. Short Sales. Realtor.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved.

Orange County CA – Another agent asked me about a short sale. his seller owed 270k. The house was selling as a short sale for 170k. The lender had two opinions of the house value. They said the house was worth 220k. However, the agent thinks those are incorrect because the house has been on the open market for several months. In addition, similar homes has been selling for around 180k.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

The biggest reason lenders turn down a short sale is because they think the house is worth more. They have people give them an opinion of value for a nominal fee. Because these people may profit if the lender forecloses on the house, they often turn in high values.

If you are selling your house as a short sale, this might happen. Here is how your agent can handle the problem. First off, they will need to “escalate” the file. This means they appeal to the lender and ask them to reconsider. They will then need to show why they think the house is worth less.

This is fairly simple. I send the lender a Comparable market Analysis, also known as a CMA. This is where I show three other similar homes that have recently sold. I compare them to the subject property and give an opinion of value based on those comparisons.

I have found it best to use a price per square foot comparison. After all, it is hard to argue that a house is worth X, when all the other homes are selling for the same price per square foot. Your agent will then request the lender order a new opinion of value. Most lenders will usually do that if there is a big discrepancy.

Another option is to hire an appraiser. Have the lender review the appraisal. It’s hard for a lender in a far away city to argue with an appraisal done by an appraiser familiar with the local marketplace.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Our Orange County loan modification kit has the instructions you will need to get a loan modification approved. Info is available here.

Thanks for reading this, Paul Flores.

Paul is a real estate agent at Re/Max Metro Real Estate Services.

Phone: (714) 863-8939. paul@paulflores.com.

Paul Flores specializes in loan modification assistance and short sales in Orange County California. Orange County Loan Modification Help, Orange County short sales.

Orange County CA – I heard about a guy who got ripped off by a debt collector. The debt collector asked if He could pay them $500. He wanted to do the right thing. So He agreed to pay the $500. The debt collector sent him a form to make the payment thru his checking account. He filled out the form and signed off on it. The debt collector proceeded to completely drain his bank account.

They sucked out $1,800. This caused major financial problems for this guy. He couldn’t afford gas to get to work. The reason that the debt collector was able to get the extra $1,300 was the fine print on the bottom of their form. The moral of the story? Never give any of your financial information to a debt collector or anyone.

If you do settle with a debt collector, only send them a payment where they can’t track you. Use a money order. Money orders keep all of your bank account information private. You can buy one with cash or a debit card. The debt collector will never get your account information.

Never give any of your financial information to a debt collector. Do not send them info on your checking account, savings account, IRA, 401k, or any other financial account you have. Many state and federal laws often give a debt collector permission to take money out of your accounts, with or without your permission.

Unless you are a lawyer, you won’t know if or when they can take money. So you are simply better off never giving them your info. The debt collection company that I mentioned above is based out of Colorado. I don’t remember their name. They tried to collect from another person I know. They were very pushy. They only wanted his checking account info.

They wouldn’t accept any other payment method. It appears they use that tactic on everyone they call. Hope this helps you in your situation. Would you like to discuss your situation with me? You can call e-mail me at paul@paulflores.com or call me at (714) 863-8939.

Our Orange County loan modification kit has the instructions you will need to get a loan modification approved. We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right?

That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, Paul Flores.

Paul is a real estate agent at Re/Max Metro Real Estate Services.

Phone: (714) 863-8939. paul@paulflores.com.

Paul Flores and his team specializes in loan modification assistance and short sales in Orange County California. Orange County Loan Modification Help, Orange County short sales.

Orange County CA – A forbearance is when you catch up all your back payments and continue paying your original mortgage payment. This is a good option for many. However, it doesn’t reduce your payment as much as a loan modification does.

Discover how to negotiate a loan modification here.

Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.

The big drawback with a forbearance is that it doesn’t reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.

This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can’t afford the higher payments.

A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.

Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our Orange County loan modification kit has the instructions you will need to get a loan modification approved.

We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, Paul Flores.

Paul is a real estate agent at Re/Max Metro Real Estate Services.

Phone: (714) 863-8939.

Paul Flores and his team specializes in loan modification assistance and short sales in Orange County California. Orange County Loan Modification Help, Orange County short sales.

Orange County CA – It takes a lender months to foreclose on your house. I have seen some lenders take 2-3 years to foreclose on a house. There are two reasons this is happening. First, there are a lot of people unable to make their payments. Second, the court system is backed up.

This gives you plenty of time to negotiate a loan modification. Discover how to negotiate a loan modification here.

Here are a few examples. I have seen many lenders wait up to a year to file for foreclosure. The homeowner stopped making their payments in January. Their lender didn’t file for foreclosure until October or November that year. In many situations, the lenders are waiting even longer than that. Obviously it all depends on the lender.

Here is an example of how the court system is backed up. Many lenders will file for foreclosure. In some situations, it takes a judge two to three months to respond to a request. The court system is only designed to handle so many cases.

There are simply too many cases being shoved into the system. Once a judge is overloaded, it takes longer for them to respond. The other thing is that the lawyers for the lenders are overloaded. Many of these law firms reduced staff during the last economic boom. Now they are having to crank up production. It is taking time for them to hire on and train new staff.

What does that mean to you? They are slow to file the foreclosure case. They don’t “push” the case to foreclose faster. I have heard of foreclosure cases in some states that would sit dormant for 1-2 years. The foreclosure lawyers simply weren’t filing the necessary paperwork. If you are facing this is good news.

You can stay in your home rent free for a long time. I saw one person move out of their house a couple of months after the foreclosure started. He couldn’t afford rent at his new house and was evicted. However, it took his lender over two years to foreclose on his house. He could have lived in his original house for free during those two years.

Hope this helps you in your situation. Would you like to discuss your situation with me? You can call e-mail me at paul@paulflores.com or call me at (714) 863-8939. Our Orange County loan modification kit has the instructions you will need to get a loan modification approved.

We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thanks for reading this, Paul Flores.

Paul is a real estate agent at Re/Max Metro Real Estate Services.

Phone: (714) 863-8939. paul@paulflores.com.

Paul Flores and his team specializes in loan modification assistance and short sales in Orange County California. Orange County Loan Modification Help, Orange County short sales.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Assistant Treasury Secretary, Herb Allison gave his opinion. “Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable. Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” He said.

This is bad news. If you are looking for Orange County Loan Modification Help, don’t become a static. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can’t afford.

Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don’t accept a $1,200 payment.

The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.

Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home’s value had dropped by 50%. Their lender wouldn’t reduce their payment.

They found a nicer house to rent for $850 a month. This is one option. If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment.

Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender’s best interest to reduce your payment where you can afford it.

Our Orange County loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking here.

Thanks for reading this, Paul Flores.

Paul is a real estate agent at Re/Max Metro Real Estate Services.

Phone: (714) 863-8939.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Paul Flores and his team specializes in loan modification assistance and short sales in Orange County California. Orange County Loan Modification Help, Orange County short sales.