Homeowners Facing Foreclosure?

Dear Homeowner,

The need for a Short Sale typically arises when a homeowner becomes financially distressed and is unable to meet their monthly mortgage obligation(s). Typically, they are unable to sell their property via conventional methods because the property is in disrepair or "upside- down." A property is "upside-down" when the outstanding mortgage balance is greater than the property’s market value.

In a successful short sale, your mortgage lender will agree to accept a reduced pay-off of the mortgage on your property, provided that the property is sold to a third party via an arms-length transaction. Additionally, in a short sale transaction, the bank will not allow the seller to receive any financial benefit from the transaction. So if anyone tells you that you will receive money from the sell of your property, they are committing bank fraud, an offense that is punishable under several state and government statutes.

As you now know, your lender will not authorize a Short Sale on your property while also allowing you to profit from its sale. Their reasoning is that if they (lender) have to take a financial hit, so do you. However, in spite of your inability to reap a financial gain from the selling of your property, there are several compelling reasons as to why preventing the foreclosure of your property should remain a top priority.

1. A foreclosure can remain on your credit report between seven to ten years. In addition to it being almost impossible to get financing for the purchase of a new home, you may also find it difficult to rent property in desirable neighborhoods.

2. Increasingly, employers are basing at least part of their hiring decision on an applicant’s credit profile. Can you afford to forego potential employment because your credit profile is sketchy?

3. In some states, a lender may choose to pursue a deficiency judgment against their borrower(s) for any losses that result from expenses incurred while trying to a sell a foreclosed property. Losses can include insurance, interest expenses and legal and maintenance fees. These fees can be considerable, amounting to many thousands of dollars. These fees can also be eliminated by allowing a qualified short sale expert to negotiate with your mortgage lien holders and proactively sell your home via short sale.

a) Home Rescue Team specializes in short sale negotiations. In fact, the success of our business model depends on our ability to successfully negotiate reduced mortgage pay-offs with lenders. Our proven negotiation techniques optimize the likelihood of a successful sale, thus preventing a foreclosure from severely damaging the financial and credit profiles of our clients.

b) In most cases, HRT will negotiate a reduced pay-off with the client’s lender at NO CHARGE to the seller. HRT will also purchase the property for CASH, using its own funds.

c) Negotiating short sales is a marathon and not a sprint. Many would-be negotiators lack the determination, commitment and patience that is required to complete a short sale transaction. Short sale negotiations can take between 4-6 months to get to closing, sometimes longer depending on the complexity of the transaction and the lenders workload. Most people facing foreclosure do not have the time, financial resources or expertise to negotiate with a lender…

d) Once we have finished negotiating with your lender, one of two outcomes is likely to occur:

a. We have a price that allows us to buy the home and HRT purchases your property for cash, thus preventing foreclosure.

b. HRT is unable to negotiate a reduced pay-off with the lender that is sufficient enough to allow us to buy the property. While this second occurrence is very rare, it has happened. Should this occur, we will bill the uncooperative lender for our negotiation services and assign our right to purchase the property to any end-buyer procured from our marketing efforts. They will then be able to purchase the property directly from the seller. Our primary goal is to help property owners sell distressed property and to prevent foreclosure.

Before we start negotiations with your lender, they will require that we have a written purchase agreement between you (seller) and HRT (buyer.) The purchase agreement that HRT uses is called an option contract. The primary benefit to using an option contract is that it gives HRT the right to efficiently list and market the property for sale as necessary. This includes raising or lowering the list price to address changes in the prevailing market.

To get started, and to start the preparations of all documents, please contact;

Rosalie Bucci, Broker, EXIT Realty Supreme - 215-591-3500 - or email rosalie@exitrealtysupreme.com

Please be advised that we can only process negotiation packages that are 100% complete. That is why it is important to contact Rosalie Bucci immediately to prepare the documents. Incomplete packages will cause needless delays and lessen HRT’s ability to prevent your foreclosure. However, once we have a complete package, we will immediately devote our efforts to preventing the foreclosure of your property.

Finally, while your lender/bank does not have the legal authority to remove you from your property during our negotiations, they will continue their legal process. Keeping this in mind, in a worse case scenario, a foreclosure may occur if your lender refuses to negotiate a reduced pay- off and it becomes financially unviable to buy your property.

When your property is in jeopardy of foreclosure, time is of the essence. Please do not delay in taking action. If you have any questions feel free to contact us. As always, we appreciate the opportunity to earn your business.