Fred Sed's Blog

*Would you like to see all of the available properties in Lake Forest, Foothill Rentals Available in Lake Forest, Foothill Ranch, & Portola Hills! Ranch, & Portola Hills?

If so then check out our rental website at Http://www.PGLeases.com and view all of the properties in all of the prices.

Call Fred Sed with any questions (949) 274-3733

San Clemente Rental Properties

Welcome to the wonderful city of San Clemente! If you are planning on renting a condo or a detached home, you have come to the right place!

We provide FREE services to all potential tenants who would like assistance in searching for a rental property.

If you would like to view the availabe rental properties in San Clemente please CLICK HERE

Please contact our office with any questions at (949) 274-3733

SOUTH ORANGE COUNTY AVAILABLE RENTAL PROPERTIES

When it comes to South Orange County, there are a variety of options when it comes to cities. The

following cities are in South OC:

Irvine, Laguna Hills, Lake Forest, Aliso Viejo, Foothill Ranch, Portola Hills, Trabuco Canyon, Coto De Caza,

Laguna Niguel, Laguna Beach, Dana Point, San Clemente, Ladera Ranch, Mission Viejo, San Juan

Capistrano.

If you would like to view the available rental properties in any of these cities please CLICK HERE

If you have any questions please call our office at (949) 274-3733

Orange County Short Sales : Can A Short Sale Save My Credit & Do I Qualify

My last article I explained why a bank would want to do a short sale and would a short sale save your home. In today's article I will explain whether or not a short sale can save your credit, as well as what it takes to qualify for a short sale.

When I get asked if a short sale can save some ones credit, my answer is yes and my answer is no. Sounds confusing..... I will explain why. By the time a person has entered and completed the short sale process they have already missed a few mortgage payments and have had a N.O.D. (Notice Of Default) filed against them. With that said, those two items already damage your credit to a certain extent. But but but, if someone decides not to go through with a short sale or can't do one and the foreclosure process continues, then it would be far worse than a few missed payments.

A short sale and a foreclosure differ when it comes to a credit report in the following way: a short sale (once completed) will show that specific debt or trade line as PAID and will cancel anything that has to do with a foreclosure. A foreclosure, once process is complete and the homeowner is evicted, remains on a credit report for 7-10 years. Which means it will be very difficult for a foreclosed homeowner to acquire any sort of credit in the future. Whether it is a credit card, auto loan, or another mortgage, it will not be easy. A short sale can help avoid this and actually help make you credit better.

For a short sale to work and for the process to be a success the following basic qualifications need to be present:

*Property in foreclosure or default

*Personal financial hardship

*Little or no equity in the property

*At least 60 days until eviction date

If any of these items above are your current situation then a short sale could be possible for you.

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I am behind on my mortgage payments, but not yet in foreclosure. Can I do a short sale?

Yes and this is happening with much greater regularity. Sometimes, these are actually the most attractive short sales for an buyer/investor and a lender because a lender can avoid ALL the costs of foreclosure with a short sale before foreclosure is filed.

In these case, it is more important to have a very good "hardship" story to explain to the lender why you are unable to make the payments.

My house needs a lot of repair; can you still do a short sale?

Yes, though it can make the process more difficult because the price must be substantially lower. The key is to be able to show the bank's appraiser all the work that needs to be done. Let us know if this is the case with your home.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

*What if my mortgage is an FHA...or HUD...or VA mortgage?

Short sales can still be done on all these types of mortgages though each one has different criteria. Just let us know what kind of mortgage you have and we will take that into account.

*What other options might I have at this point?

When faced with a foreclosure, some things you may be able to do are:

1. Sell your home through the normal channels
2. Bring your mortgage current by making the missed payments and paying the penalties
3. Refinance your mortgage with another lender
4. Modify your Loan
5. File for bankruptcy

If you can do any of the first 3, then you probably should! Those are usually the best solutions for a homeowner in foreclosure. However, if your situation is such that your house cannot be sold for the amount owed, and you have no money to bring the payments current, and you have no equity to qualify for a refinance, then you should consider a short sale before considering option #5.

Again, we encourage you to educate yourself as much as possible about your situation and seek advice from any attorney or CPA you have access to about your choices. We do caution you against paying for the advice of so-called "foreclosure work-out specialists" or other such advisers unless it is by personal recommendation.

Contact Fred Sed 949-274-3733 if you feel a short sale might be an option for you.

* I am in foreclosure, is a short sale for me? Do I qualify for a short sale?

Each situation is different and must be evaluated individually. If you believe you fit the basic criteria of:

1. Property in foreclosure or default
2. Personal financial hardship
3. Little or no equity in the property
4. At least 60 days until eviction date
5. Unable to make the mortgage payments
6. Income is less that your expenses

e-mail us at FredSed@PGcoastal.com or call at 949-274-3733 if you have questions about your situation

*I am NOT in foreclosure and I have missed NO PAYMENTS, can a short sale work for me or do I qualify for a short sale?

The lender must be convinced that they will NOT BE REPAID without the short sale.

If you are not in foreclosure and you have not missed any payments, a short sale is likely and is possible. The key is to have a legitimate financial hardship that will keep you from making the payments. A short sale is not just an easy way out of a bad investment. If you are working and your house has just lost some value, that is just unfortunately a bad investment and you are responsible to pay the shortfall.

Short sales are when lenders agree to discount a mortgage for someone who has had legitimate hardships and who has little chance of paying the amount owed. You may be hearing stories that mortgage companies are hurting and they don't want these houses and are giving big discounts away. These stories are mostly urban myths and are not true. In fact, the opposite is happening. Since profits are down, lenders are getting tougher when negotiating prices. They are not letting properties go cheaply and without very good reason. They will try ANYTHING to get you to repay the mortgage in full. A short sale is only a last resort, but we do know how to get lenders to agree to a short sale.

Contact Fred Sed at 949-274-3733 with any questions about Short Sales and to see if this is the best option for you.

* Will a short sale "save my house"?

In the sense that you will be able to continue to live in the house, unfortunately, the honest answer is no. A short sale is only done involving a legitimate sale of the home from the foreclosed owner to another unrelated party. Many of the cards and letters you have gotten have probably promised to save your house, however, this is very seldom possible. We would recommend that you NEVER sign away your deed to someone who promises to "save your house" from foreclosure. It is probably a scam.

* Will a short sale "save my credit"?

The short answer is yes and no, a short sale can save you from the worst credit disasters.

By defaulting on mortgage payments and having a foreclosure filed against your property, you have already done damage to your credit. Your credit score has declined and those negatives will stay on your credit report for some time. However, it will get much worse if you allow the foreclosure to continue and do not try to short sale the property.

Once a foreclosed property is sold at auction, your credit score is further reduced and when the foreclosure is completed via eviction and repossession of the home, your credit will be even further damaged. If you can complete the short sale BEFORE either of these takes place, then you can prevent that further damage to your credit. In addition, when the short sale is completed, it shows up on your credit as a "Paid" mortgage and a canceled foreclosure, which shows future creditors that you did take care of your obligations.

If your situation eventually winds up in bankruptcy, then that is the worst item that could appear on your credit report and it will remain there for years and cause numerous difficulties in getting future credit. A short sale can help avoid this, but the key is not to wait.

Contact Fred Sed 949-274-3733 if you want to see if you qualify for a Short Sale.

Are short sales guaranteed to work?

No. Even though short sales are increasing they are still fairly complex, as I have stated. All the criteria MUST be met for a bank to even consider a short sale. It is not easy to convince a bank that the market value of the home is lower than what they are owed. They do not like to take a loss on a loan.

Then the bank must be convinced to discount the mortgage enough to make it viable for a potential buyer.

In some cases, we do all the paperwork and wait several weeks only to be denied. Again, the homeowner continues to own and live in the house if he chooses.

If the lender does not approve the short sale, The Pahua Group has no rights at all to the property and no transaction occurs. The purchase agreement becomes void and the listing continues.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM