Accelerated Selling Advocacy Program
Sell in 3 to 65 days!
Find out how our partners and we can offer to sell your property in 3 to 65 days. Our A.S.A.P.SM Qualifies under the HAFA Program offered by the government! See our FAQ's or contact us at save@wahousingadvocates.com to get more information and get started today.
When markets get tough, that's when the community needs an organization with negotiation skills, marketing expertise, market specialization and government resources. That's what we're known for. Advocating for affordability is our mission®
Our communities are being ravaged by our neighbors losing their homes to bank foreclosures without any professional intervention. The long-term ramifications of homes sold in a bank foreclosure are devastating to families, communities and our economy. It can be avoided. Our community Certified Distressed Property Experts© (CDPE) have the expertise and resources necessary to relieve the uncertainty. We have options available to work with but time is of the essence.
Ramifications of Foreclosure
Going through a foreclosure will reduce a credit score hundreds of points and stay on a credit report for years. With a low credit score and a foreclosure on a credit report, the borrower will have a difficult time obtaining approval for new car loans, student loans, or acceptance as a tenant. A foreclosure on a credit report could have a negative impact for an employment opportunity in the future.
Many job applications ask if you have ever had a foreclosure. If an employer (military, police, airport, cashiers and banking) requires a security clearance, they will have the right to refuse your security clearance with a foreclosure on your record.
This is why it’s very important to contact us as soon as possible, so we can better assist you in making The Healthier Choice. We can refer you to accredited nonprofit organizations that counsel specifically on these issues and you will also have us for support and resources. Time is of the essence.
The Dilemma of Lending Institutions
Some lending institutions would rather accept a short sale in order to avoid the foreclosure process. In such instances, the lender would have the right to approve or disapprove of a proposed sale. This is why it is very important to act as soon as you know that you need to conduct a short sale. A homeowner may practice a short sale to pay off the loan for less than what is owed and not necessary be in “distress”. If the property is your primary residence and you commence a short sale you may not “owe” tax on the difference forgiven. This will be covered in mortgage forgiveness.
How a “Short Sale” Affects Credit Rating
When a seller practices a short sale, they will lose a number of points on their credit rating. Even after losing some of their credit rating from a short sale, they can typically purchase another home in 2 – 3 years. Only the delinquent mortgage payments get reported when a homeowner undergoes a short sale transaction.
“What is a Short Sale? Short Sale 101” (Komo 4 News)
How “Foreclosure” Affects Your Credit
In foreclosure, a homeowner will lose a more significant amount of their credit score than they do in a short sale transaction. After foreclosure a homeowner’s credit score will usually fall hundreds of points, and it typically takes up to 7- 10 years for a borrower to obtain a conventional mortgage loan again. It's required that foreclosures are listed on any credit application to obtain loans and credit.
What Are Your Options?
If you are in a situation where you need assistance, you need to speak with our short sale/foreclosure intervention expert to figure out what steps to take and options you may have. We will guide you through the entire process. Please contact Washington Housing Advocates at save@wahousingadvocates.com or 888.253.9737 to discuss your options. The sooner you act, the more options you have.
We don’t charge any upfront fees and we only refer you to state approved counselors to facilitate with you on all your possible options. We’re licensed real estate professionals and will provide you with the resources, options and solutions that will save you from the uncertainty.
“Housing Advocates can help avoid foreclosure” (Komo 4 News)
HAFA (Home Affordable Foreclosure Alternatives) Practitioners
NOTE: Get in contact with us ASAP to provide more of these solutions. The more time we have the more solutions we can implement to help your family. We’ve worked with most small & large financial institutions to negotiate Short Sales & Loan Modifications through our Loss Mitigation Advocacy
Options when in Pre Foreclosure
Below are the options available to you as a homeowner facing possible foreclosure. If you prefer an option we do not list below, we can refer you to the appropriate accredited resource.
Use us as your resource to help you receive the most up to date information for your individual situation. We recommend consulting with a HUD Approved Mortgage Counselor that is affiliated with a nonprofit. Contact us for our recommendations. Time is of the essence.
In “Default” with the lender
If you are behind on your payments (Notice of Default) and not in foreclosure yet (Notice of Trustee Sale), you may be able to qualify for a loan modification. You may use a government agency or attorney to negotiate your modification. Only 2 out of 10 borrowers are able to obtain a loan modification (source Solid Ground). We can help by evaluating your situation and exploring healthier alternatives. Even if your bank is owed more than then what the home is worth, we can help negotiate with the bank to take a discount, commonly known as a “short sale”.
SELLING TO A REAL ESTATE INVESTOR
To prevent a foreclosure, some homeowners opt to sell their property to a cash investor. We can facilitate this transaction and help market the property to investors nationwide. Please see our Cash Out Solution.
SELLING AS A RETAIL LISTING
With enough time (3-6 months), you may be able to list your property with us and find a retail buyer to avoid foreclosure. In this case our Power Listing Solution will maximize exposure to qualified buyers and sell your property more effectively.
REFINANCING
With a good credit score, 20 - 30% equity and enough time can qualify for refinancing. Unfortunately while you are in foreclosure, your credit score drops and your choices in finding a lender to loan against your property can be very difficult. We can refer you to a HUD Approved Mortgage Counselor who may have programs for your individualized situation.
FILING CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy may protect the property from foreclosure. If this is an option that you want to pursue, we recommend for you to seek legal advice right away. It’s best to act quickly to minimize the added expense that your lender will pursue you for (suit). Statistics show that an estimated 80% of homeowners that file Ch. 13 Bankruptcy to protect their property from foreclosure fail to meet the restructuring of the mortgage payments. This will cause the lender to pursue with the foreclosure of the property after obtaining acceptance from the trustee of the courts.
If successful in having protection; Chapter 13 bankruptcy lets you rearrange your financial affairs, repay a portion of your debts and gain control of your financial situation. You repay your debts through a Chapter 13 plan, where typically you make bi weekly monthly payments to a bankruptcy trustee for three to five years. The bankruptcy trustee distributes the money to your creditors. Please seek a legal advice on bankruptcy related questions.
YOU MAY QUILIFY FOR A FORBEARANCE
A few banks will allow you to do a forbearance plan on your property. If you meet the bank’s criteria, this might be a good option. A forbearance is where you postpone a portion or all of your mortgage payments to a future date (few months to a year). In most cases, the bank requires a large lump sum portion of your arrears (delinquent back payments) up front, leaving the remaining arrears to be spread over several monthly payments. Please consult with us on this option and have us refer you to a HUD Approved Agency.
With any of the options we have offered above, time is of the essence.
Contact us immediately for more information and assistance.
If you face foreclosure:
Washington Housing Advocates recommend several steps to help you stay in your home.
- Talk to your lender as soon as you know there's a problem.
- Read your loan documents so you know what type of loan you have and the steps your lender can take if you fall behind on payments.
- Open your mail. Lenders are required to provide legal notification of foreclosure.
- Prepare a household budget and prioritize your spending.
- Attend a mortgage- intervention seminar to understand your options.
- Avoid foreclosure-rescue schemes. You don't need to pay to get help preventing foreclosure.
- If you need to sell your home for less than you owe the bank, work with an experienced real-estate agent and be prepared to wait. These sales, known as short sales, require proper documentation and often take at least three months to be approved.
- A list of agencies offering free foreclosure counseling is available from the Washington State Homeownership Information Hotline at 1-877-894-HOME or go to: www.homeownership. wa.gov
Stay Connected
Stay connected & informed of up to date housing news
