Frequently Asked Questions
Home Equality Loan Program is a community outreach program that helps homeowners stay in their home. We work directly with your lender and government agencies to determine your eligibility for modification or reinstatement programs. At no cost, we work within their guidelines, on your behalf, to ensure the best possible results.
Do not be afraid to ask for help. You should seek assistance at the first sign of financial difficulty in making your monthly mortgage payment. If you have only missed one payment, it is still time to seek out assistance and explore your options.
Our service is free. In fact, it is actually illegal to collect upfront fees for a loan modification. We are a full service brokerage so the way we make money is off of referrals on the great work we do or in the event a homeowner decides selling is their best option. We do ask that you spread the word that there are options available and give us a review online if you decide to work with us.
Your loan can be in a current status while you negotiate terms of a loan modification or short sale. A lender can take into consideration the hardship is coming and/or the property value is not enough to sell the home to pay off the mortgage in full. Circumstances such as a new medical condition or relocation for your employment can cause a hardship in the near future, so working with your lender right away is always in your best interest.
Your comfort level during this entire process is very important, however, hiring an attorney that could accrue costs to you is not necessary. You can work with your lender direct and keep informed along the way. There are many ways to educate yourself and work with the lender without a go-between.
It is not recommended to stop making your payments. If you can still meet your obligation, you should do so. By not making payments, you are adversely affecting your credit score. You can still qualify for many of the assistance programs while making your monthly mortgage payment.
The term financial hardship can mean many different things. Relocation due to your employment can create a hardship and the need to sell your home so you will not have to make two monthly payments is important to stay afloat. A lender will consider your situation and determine if it is a hardship situation or if the property cannot be sold at a value that will be enough to pay off the mortgage.
Your house does not have to be under water to negotiate with the bank. If your payment is becoming difficult to make it can be for many reasons other than the home’s value. If you do need to sell as a short sale, however, the lender will do an appraisal on the property to determine what they will need to net from the short sale. If the numbers do not meet their guidelines, then the application could be denied.
A short sale will lower your credit score, however, the damage is less than a foreclosure. Your credit can be repaired and in time with consistent monthly payment histories and waiting for around three years, you can reapply for a mortgage to purchase a new home.
A short sale with multiple loans, liens or judgements can be a bit trickier, but it is possible. New guidelines set into place allows a second lien holder a percent of the balance owed to them to be paid to them in a short sale. Essentially the first mortgage holder is paying the second mortgage holder since it is reducing the amount the first lender receives. It is important to receive both agreements in writing and that the first lender is allowing payment to the second lender. If a property goes into foreclosure, often times, a second lender is left out in the cold, so ideally it is optimal for them to take what they can through a short sale.
Typically, a rejection of a short sale is due to missing documentation or the offer you received for the short sale does not meet the net of what the lender is expecting. The lender will perform an appraisal on the property and often likes to receive around 80% of that appraised value. Keep trying to get an offer that works to fit their expected net from the sale.
The bank can pursue a deficiency for the difference in what you owe and the amount you sold the property under a short sale. It is important to get all terms in writing to be sure you are safe from a deficiency judgment being filed against you for the balance you still owe. However, in California, there are a number of acts that grant homeowners mortgage forgiveness.