Simply put, a short sale is when a homeowner engages a REALTOR or Short Sale Negotiator to sell their entire property short of what they owe on the mortgage. When a short sale occurs the title is transferred to a new buyer.
Through this process, the homeowner and the bank renegotiate the terms of the mortgage loan. In some cases, the bank will offer a new interest rate and extend the monthly payments. The bank still gets their interest and you increase the length of time you are locked into the home. In some cases, the bank will theoretically decrease the actual principal. This is extremely rare.
By the way, bumping a negative amortization loan with a 1 or 2% interest rates up to the current interest rate will potentially double the monthly payments. So there is no modifying a negative amortization loan. It just doesn’t work out.
Settling Short your 2nd or junior mortgage lien is when a homeowner engages a negotiator to offer the bank a short settlement on what is owed on that 2nd note or lien. This requires that the appraised value of the home is less than the amount owned on both loans.
Why Lien Elimination?
Lien elimination reduces a good chunk of your total monthly mortgage payment and gets your mortgage closer if not under what the property is worth in value. Lien elimination might free you up for a refinance of the 1st or to even sell the property and move onto something else.
If you are caught up in the endless spiral of a negative amortization loan, lien elimination could be your rescue.
I am a licensed Santa Cruz Realtor, Senior Short Negotiator and Lien Elimination Specialist with an additional ten years’ experience as a Senior Mortgage Banker. My intention is to make a real difference for homeowners. If you think I may be able to help you through lien elimination, contact me for a free phone consultation. Let’s put you back in control of your financial life.
REALTOR | Senior Short Sale Negotiator | Mortgage Lien Elimination Specialist
Directions Real Estate(831) 345-1381 Cell
(866) 446-3142 Fax
DRE # 01417614