San Diego Housing Market News and Analysis

CALL ALAN GREENSPAN!

'need help' and 'dealing with this situation'

what is it you would like to do?

my cynical side says you are trying to play on the current sympathies being expressed inre the fires

are you hoping that somehow these sympathies will translate into a bailout for you?

~

if you are willing to share I would truly be interested in hearing what kind of help you are seeking and what it is you hope to accomplish via this help

I'd also be interested in knowing how many people are living in your 4 bed / 3 bath house

Cut off your ARM!

Need help, I'm sorry for your situation. Unless you have some decent equity in your home, I honestly recommend attempting a short sale or just allow it to foreclose. If the payments you are facing are that high, they might never be where you can afford them. Do you really want to be married to these high mortgage payments for 30 years?

Consider walking away and renting. There are plenty of rentals available.

You need to speak to a lawyer. What exactly is a "loss mitigaiton specialist" ? Sounds like a term for an unlicensed entrepreneur who is trying to make a buck off your situation.
Run, don;t walk to a a real estate attorney. A realtor is not likely to be of much help, other than giving you an opinion on current price.
Nope, see a real estate lawyer.
Also to educate yourself look up the following concepts:

Deed-in-lieu of foreclosure
Short Sale
1099 Debt forgiveness

Is your current mortgage acquisition debt or did you do a cash out refi or have a second ?

Thank you to for the advice. I don’t have any equity in the (the loan amount is 535,000 but according to zillow.com my house is worth 515,000) so I know my options are short sale or foreclosure. I have come to terms with that I was just trying to see if anyone knew of someone who has experience with the pre-foreclosure process. Someone that will be able to help my family through the process. A loss mitigation specialist is apparently someone who will negotiate with the lender to lower the rate on the loan or work out some kind of payment plan. It’s basically someone getting paid to do something we can do on our own. And yes, I have already tried with my lender and they offered the forbearance but my payments are already so high that we would never be able to catch up. I live with my sister and we take care of our parents. She also has 3 kids. We bought our home in 2004 but in 2005 my dad was hospitalized for 4 months and due to missed work we made the mistake of using credit cards to pay some bills. In 2006 our 2 year fixed rate adjusted and it went from 5% to 8% and our credit score was in the 600s by then & we’ve been struggling ever since. This is definitely not a scam to play on anyone’s sympathies during this time. I started the process of looking for help early last week. I am already in credit counseling to work on my credit card/loans and am looking for someone who can help me with this part. I know I am going to lose the house - I just wanted to find someone who can offer some guidance. It sounds like a real estate lawyer is my best option.

"And yes, I have already tried with my lender and they offered the forbearance but my payments are already so high that we would never be able to catch up."

You do realize where and who you are asking help from right? If you knew that you couldn't afford the reset payments, then why did you buy with an exotic loan? I am very curious about the mindset at the moment of loan signature.

You have to understand that you are what we here call an FB. This is precisely what we have been warning about for 2 plus years now. 2 years ago, you probably would have called us bitter renters or some such non-sense.

In addition to short sale and foreclosure, you also might be able to do a deed-in-lieu of foreclosure to avoid taking a hit to your credit. This requires your lender to agree that the value of your home covers the balance (wink-wink).
If you can get the lender to agree to that, it's the best option.

http://en.wikipedia.org/wiki/Deed_in_lie...

Don’t know what FB means.

I know that we bought the home without understanding what we were getting into. My parents moved here in 79 and their dream was to be homeowners one day. Unfortunately it never happened for them when we were kids but now that they are older and our dad’s health has deteriorated, my sister and I decided to come together and purchase a home where we could take better care of them and they could live out their golden years. This was after 25 years of our family renting. We thought we were making a secure move for our family. Please believe me when I tell you that I am now very aware of what you refer to as exotic loans. Please understand that I do know the mistakes I made that got me to this point. Please also understand that there are countless people that do not understand real estate as you do. I thank you for reading my request for help.

As for the loan, I’ve tried to negotiate with the lender myself but they say they are only the servicer and not a mortgage loan company and cannot adjust the rate or payments. By the way my loan is with Wilshire Finance in case anyone has any experience with them.

Thank you FormerSanDiegan for your advice. I have researched deed in lieu of foreclosure and know that it will need lender approval. I’ve also read that with Short Sale I can be taxed on the difference between the sale and what I owe on the loan. So these are things that I am looking for guidance on. As you suggested above, I will seek the advice of a real estate lawyer.

If you want to keep the home get a second job and make the payments. If you don't want to keep the home stop paying. Live there for free until the kick you out. There is nothing else you can do. Short term fixes are not going to change the situation. You will be under water for many years to come.

I don’t have any equity

Just based on that information, I think throwing that monkey off your back may give you great relief. It is difficult to visualize any scenario that will be profitable for you. Just try to walk without getting hurt by tax consequences. If you have any recourse loans (HELOC, Second etc.,) you have to be a lot more careful and anyway you need a RE lawyer. If you have other serious debt problems, you should seriously discuss various bankruptcy options with the attorney too. You should not make any life changing decisions based on any advice from this board.

I know a lawyer who is very good in real estate and can help you. He's also a licensed RE broker, is a good negotiator and is specializing in these matters. If you can be helped, he should be able to figure it out. I will forward his contact info to you if you email me dlarcot [at] gmail [dot] com

You could also try 888-995-HOPE. I found this from a story in the Reader a couple weeks ago.

We have had success negotiating Short Sales. It seems that you have exhausted other alternatives. My concern about seeing an Attorney is his potential, self serving bias toward bankruptcy. There are many variables to a Short Sale, not the least of which is the quality of the package presented to the Lender. Another problem is that you are dealing with an Institution and each has different guidelines. In all cases, the Lender does not want your home! Call or email me for more information. David Zagorsky Peak Properties 858-259-8021 davidz [at] san [dot] rr [dot] com

"Don’t know what FB means."

F**ked Borrower....sorry for crassness of it, but it is what it is.

Like others here have said, you should consider short sale or bankruptcy depending on the total circumstances (RE debt plus Commercial Debt.)

Thanks JWM - that made me laugh! No worries about the crassness as I have called myself a lot worse for getting into this situation.

Nope, no way possible for us to keep the house. So now it’s just finding someone to help us with the next step. I definitely want to avoid the bankruptcy route, though.

Thanks for the advice everyone. I will check into all that you have suggested.

Sincerely,
FB in Oside

needhelpinoside:

If you delay looking for a place to rent, your credit may be worse and you may have a harder time. You may want to look for a new place to rent sooner, instead of later, so you will have more rental opportunities open to you.

"Please believe me when I tell you that I am now very aware of what you refer to as exotic loans. Please understand that I do know the mistakes I made that got me to this point. Please also understand that there are countless people that do not understand real estate as you do. I thank you for reading my request for help."

Needhelp, I just want to extend my sincere sympathies to you for your plight. It is unfortunate that folks liek you who come to boards such as this, looking for advice and guidance, are persecuted for decisions you have made. While I think you, I and everyone else on this board would agree that your choices were foolhardy, it doesn't sound like you were a speculator. Rather, I get the sense that you, like millions of other Americans who increasingly feel shut out of the American Dream, simply wanted a bite of the carrot that is dangled before all of us. I'm really sorry that you and your family are experiencing this misfortune right now.

That said, I agree with the majority advice here: it is imperative that you do a short sale, and if you can't find a loss mitigator or other third party to make that happen, try it yourself. If that doesn't work, pack your stuff and leave. Your credit score is going to tank more than it alreayd has, but it sounds like you and your family are very close. Hopefully, one of you will keep a decent score that will enable you to pool your money when the time is right and start over again.

Lastly, and this is extremely important: rent as cheaply as you can from here on and save EVERY penny you can find. There is a hard wind coming, and I can't stress how important it will be to remain liquid. This time next year, housing woes will be the least of your worries.

ROTFLMAO...Talk about self serving! I have yet to meet a Realtor that completely understands Short sales. In fact, after speaking to my attorney friend he explained how just about every Realtor doing short sales put their clients at extreme peril because thye dont truly understand the law. BTW, my attorney contact is not a bankruptcy attorney.

Short Sale and foreclosure in California

I too was entertained by the loss mitigators comments about the self serving bias of lawyers towards bankruptcy.

1. The bankruptcy code has become much less useful to many debtors. It is one of the reasons so few lawyers have gotten into this real estate deflation field this time. However, be on the lookout for a bill Congress which will give bankruptcy Judges the right to unilaterally restructure loans with exploding arms.

2. What is a short sale - it is a workout plan. It is part of the gamut of options an owner should consider. Who did the negotiating with lenders in the past... Lawyers. Before suggesting bankruptcy a professional suggests a workout plan if one is feasible. Who do you think practiced the art of a short sale. It used to be a sale facilitated by a short payoff. Realtors did the Realtor work and lawyers did the law work. And, the consumer was protected and correct in the assumption that a short sale released the consumer from a deficiency. Why - because lawyers made sure the paperwork was in place.

Now we have newly minted short sale specialists and loss mitigators going around and telling upside down sellers - a short sale will cure their loan problems automatically. Even though the information is critical in the sellers selection of options they will ignore or improperly counsel sellers on subjects like recourse vs non recourse loans, sold out juniors liens, the effect of judicial vs non judicial foreclosure, and perhaps most importantly they will let a seller march into a closing set up for the lenders benefit and the buyers benefit (and the realtors fees) without anyone making sure the proper documents are in place. Documents which may be necesary to protect the seller from deficiency.

Loss mitigators and short sale specialists simple boggle my mine. You know a lawyer is not supposed to call themselves a specialist in this area.

Anyone professional and educated enough to understand the potential complexities of each transaction would take each clients situation seriously enough to protect (themselves and) their clients by having them properly advised and protected by mal-practice insurance.

Again, I am not be anti-Realtor. It just my belief that a Realtor, a lawyer and even a Realtor/Lawyer has to know their limitations.

needhelpinoside,

My brother-in-law is a bankruptcy attorney. Since last year he has been talking to people like you all day long. He can tell you exactly what is going to happen, and tell you what your options are. He has two offices, one in SD, and one in South County. Not all of his clients end up going into bankruptcy. But, unfortunately many do. I was surprised to hear it's not the worst thing ever - and if you set it up right, and figure out how to protect yourself, you will come out ok.

If you want his email address, or phone number, please email me at lindismith @ hotmail.com

Re: Johnmcconnin's comments. While I am only a Real Estate Broker, not an Attorney, and can't give legal counsel, most of your comments are on point about the complexities of Short Sales. However, most foreclosures in California are Trustee Sales and are non judicial.
A successful Short Sale has to be a "win" for all parties. If you need a more detailed discussion please call me. David Zagorsky Peak Properties 858-259-8021

As a "Short sale" expert I would expect you have significant experience in successfully negotiating Short Sales. Is that a reasonable assumption?

If it is, please explain why you have closed only 3 listings according to the MLS since 1999 none of which were listed as short sales?

sdrealtor writes: my attorney friend he explained how just about every Realtor doing short sales put their clients at extreme peril because thye dont truly understand the law.
Sounds like something many of us, particularly the topic starter, might find interesting and relevant. Could you please elaborate a little?

"Please also understand that there are countless people that do not understand real estate as you do."

I'm sympathetic...kind of...but this statement rings hollow. I knew nothing about mortgages or real estate before I bought my house. I figured that I better learn something before I put myself in the hole almost $400k.

So, I bought a few books (including Home Buying for Dummies) and learned a few things. One of the things I learned was the risk in ARM's and decided I'd buy less house and get a 30 year fixed rate loan since I wasn't willing to take the gamble of rising rates and not being able to refinance into payments I could afford.

You on the other hand, plead ignorance after having dropped more than a half million on a house with loan terms you didn't understand? People like you probably spend more time comparison shopping and doing research on the internet for a TV than you did for your house. That's sad...very sad.

My expertise: I have only tried to be helpful in pointing out the complexities of Short Sales. My business is done through another organization. Having been a Broker for 35 years makes me somewhat qualified, but maybe I am only a legend in my own mind.
By the way, were you working during the RTC days,so was I, but I will defer to your expertise and leave the field to your wisdom while I go make a living helping those who want and need it.

As I suspected. No answer to the question. You came here shilling for business and left with your tail between your legs after having been proved to be anything but a "Short Sale expert". If I'm wrong, prove it rather than throwing around a piece of paper that's likely been sitting on a shelf somewhere for 35 years.

BTW, based upon your activity it doesnt look like you are helping anyone.

ROTFLMAO

OC Scam,

This is just what I needed! Between this one and the cutting off your ARM I'll go to sleep with a smile on my face. The rest of the posts were altogether curious, ridiculous, insightful, educational and entertaining but your's takes the cake. Thanks for the laughs.

sdrealtor: It is sad that with all the misery around us that you have time to attack me. I only came to the site to see personal insights into the fires.
Having noticed the request for information on Short Sales I thought I could help. Please remember that helping each other is why we are here.
Perhaps your attorney fiend (sorry for the typo) is privy to arcane "stuff" that we mere mortals will never know but I doubt it.
Anyway, as I noted previously, I want no more of your pontifications and will not respond again even if the Automatic Update tells me to look.
Life is too short.

"We have had success negotiating Short Sales." That was your quote, word for word. Dont come around here holding yourself out as an expert on something while shilling for business unless you can back it up. Nothing you have posted does so. We are truly here to help each other and that is why I am here. Not once in the nearly 2 years that I have been here have I looked to get business here. Your first post here was looking for business not offering free asistance online. End of story.