FAQ

What needs to be done when receiving a “Notice of Default” or notice of “Foreclosure”? Act quickly and contact professionals to review your options. Whatever you do, do not hesitate. We can help steer you in the right direction.

What if I’ve already received a date for auction? In most cases the Lender will review offers right until the actual sale. You also might be able to take action that secures more time. The lender, typically wants help from companies like us as foreclosure auctions are expensive for them. However, you must act very quickly and call us for a free consultation.

I am 60 days late, do I have to sell my house? No, not necessarily. Although the pressure seems to be mounting there are still many options available to you. There may be enough hardship to have the lender consider re-modification or restructuring of your loan. Please make sure you act quickly. Contact us for a No-Cost consultation.

How do you make money I'm sure you don't work for free? YES this is a job and we need to get paid. When a short sale transaction is completed, our fees come from the lenders, not you. However, some short sale mitigation may require a small up-front fee, depending on the situation. For loss mitigation, such as loan modification servicing, a small upfront and refundable fee may be required. Please refer to our Working Agreement. Should an attorney need be involved, they will typically require a small retainer. Inquire about our strategic alliances with some of the nation’s top foreclosure attorneys that can help you for as little as $500 up-front should you decide to short sale your property.

Do you service the entire country? YES. Stop Foreclosure Now offers Short Sale and Foreclosure Management help and loss mitigation services should a client want to make more affordable payments and keep their home. Our network of licensed REALTORS and mortgage consultants are at your fingertips. Every REALTOR in our network is trained in our specific process.

What is a Short Sale?
When your lender agrees to accept LESS than what you owe to pay-off your mortgage and you sell your property.

Why would a lender consider a short sale, or loan modification? Lenders are not in the business of buying and selling real estate, and now, more than ever, are upside-down just like you may be. In fact, its expensive and consuming for them to fully foreclose. In order for them to protect their charter, especially in difficult market environments, they must do what is needed to minimize their losses. Therefore, lenders have established short sale, loss mitigation or prevention departments. In many cases a preemptive offer or attempt to sell your property, even for less than you owe, will actually be a better option for the lenders.

How does a short sale affect my credit? If we can sell your property before a sale it will typically show up as "paid" or "settled deficiency", however the lender does reserve the right to make a notation typically "less than originally owed". We will do what we can to communicate to the lender a "paid" status be shown on your credit report. The best way to preserve your credit is to act quickly. The actual foreclosure sale and subsequent judgment for the sale difference is what you MUST avoid. Your credit report will also show the sale. Ask about how we can assist you in credit restoration!

Are you a Law Firm? No. It is important to consult an Attorney for legal advice for legal matters. We would be happy to refer you to attorneys that can help in your area.

Is it legal? YES. We do not condone any fraudulent activity. Everything that we do for you is done legally and negotiated with all parties involved.

What options do I have? Options we might review with you and/or your lender(s) include: Pre-Foreclosure Sale, Short Sale, Deed-in-Lieu of Foreclosure, Chapter 13 Reorganization of Consumer Debts, Do Nothing, Reinstatement Plan, Repayment Plan, Loan Modification, Loan Forbearance, Loan Restructuring, Loan Refinance, Assumption Partial Claim

I continue to get mail from so many places. Who do I trust? Foreclosure is a public process, and is typically filed by the lenders attorney at the courthouse. Once this happens there are several companies and individuals who take the information and attempt to market their services to you. Your information can even be sold several times. A lot of these mailers are equity specific, and they offer to purchase your property. However, if you don't have a lot of equity or none at all, you may qualify for a short sale. Call us.

I've heard there are tax consequences if the lender forgives some of the debt?
YES there might be. Your Lender will report the debt as a tax loss. Similarly you may have to account for the gain. In most cases, if it is a primary residence, there are 5 situations that will forgive the tax burden. 1. Insolvency - your total debts exceed your total assets at the time your debt was settled or deemed non-collectable 2. Bankruptcy - the debt was already discharged through a bankruptcy proceeding 3. Indebtedness due to certain real property business losses 4. Indebtedness due to a qualified farm expense 5. Discharge of your debt was treated as a gift.

For investment properties a short sale may result as taxable income for the difference between the original pay-off balance and settled pay-off. Please consult your accountant or tax advisor.

What will the Lender need from me? Instead of convincing the lender that you are credit worthy, your information required should indicate your inability to pay. This may include: personal hardship letter, tax returns, pay stubs, and bank statements. The lender must receive this in order to review your situation, after you have determined that a short sale is advantageous. Call us for a free consultation now.

Should I try and sell my house myself? FSBO (for sale by owner) is always an option while you own the property. Most Lenders will require that you list your home for sale with a REALTOR who subscribes to MLS, since they are licensed and are most credible of selling property. The listing Agreement is often proof of your willingness and attempt to sell, which in turn, the lender might allow more time. However, if you do not have a realtor, we can help assist you through our network.

I'm ready to work with you, what's next?

1. Complete the Property Owner Form. Upon submission we will contact you for a no cost evaluation.

2. Feel free to contact us AFTER you've submitted the form to arrange consultation.

3. HELP TRY AND Stop Foreclosure Now!