Help required for foreclosure

I am attempting to convince my clients not to foreclose on their property. Unfortunately they got into the market at a bad time and are unable to keep their payments. I would like to convince them to try a short sale instead. However they have asked me a question regarding foreclosure which I do not know the answers to.

Here's the situation. The property has two names under title, but only one name under the loan. The question is if they do move forward with a foreclosure or a short sale will the negative affect on credit only apply to the loan holder? What will happen to the other title holder (credit or otherwise)?

Thanks for any help you all can provide.

Edited: 06/26/2010 at 05:15AM

Minna Reid

Real Estate Broker · Southington, Connecticut

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Jun 17 '08, 04:25 AM

Nothing wil happen to the title holder that is not on the mortgage, except he will have to sign the deed in case of sale, or in case of foreclosure he will lose his interest in the house.

Edited: 06/26/2010 at 05:21AM

Donte Aka GetSmart

Real Estate Investor · Charlotte, North Carolina

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Jun 19 '08, 12:39 AM

also you should suggest that a foreclosure along with late payments will definitely affect one of their credits than doing a short sale early in the process.

Edited: 06/26/2010 at 05:21AM

Stefan Oshima

Real Estate Consultant · irvine, CA

6 posts
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Jul 09 '08, 01:24 AM

Originally posted by "Kane7"

I am attempting to convince my clients not to foreclose on their property. Unfortunately they got into the market at a bad time and are unable to keep their payments. I would like to convince them to try a short sale instead. However they have asked me a question regarding foreclosure which I do not know the answers to.

Here's the situation. The property has two names under title, but only one name under the loan. The question is if they do move forward with a foreclosure or a short sale will the negative affect on credit only apply to the loan holder? What will happen to the other title holder (credit or otherwise)?

Thanks for any help you all can provide.

Hi,

Also keep in mind that if short sale is not an option and they want to stay in their home; a loan modification is an option. We have provided help to hundreds of homeowners to modify their loan due to hardship. Also we have provided this service to our affiliates so they can help their clients. Our processing on the modification is handled with our in-house attorneys and legal department at our company.

If there's anything I can help with please let me know.

Thank you,

-Stefan

Edited: 06/26/2010 at 05:29AM

John DiCanio

Real Estate Consultant

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Jul 10 '08, 05:06 AM

if the property goes into foreclosure the person that is on the mortgage will feel the effect not the person on title. there are many ways to stop a foreclosure by way of short sale and loan modifications. but nine times out of ten they dont work. we have a different way of dealing with foreclosures that deal with the legal system and you can stay in your home for 24 months at 1/6 of your payment if you would like some help please contact me.

best regards,

Edited: 06/26/2010 at 05:29AM

Dave P.

Real Estate Consultant

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Jul 11 '08, 06:54 AM

but nine times out of ten they dont work.

Really?

9 out of 10 don't work? That's amazing. Where did you pull that stat from?

Kane,

I don't think there is enough information for anyone to provide strong recommendations. Why don't you provide more info, so real advice can be given.

Have they missed any payments?

Other than getting in the market at a bad time, why are they slipping toward foreclosure?

here to help,

Dave

Edited: 06/26/2010 at 05:30AM

John DiCanio

Real Estate Consultant

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Jul 11 '08, 11:32 AM

my stats are from mortgage companies,attorneys,loan modification sevices as well as working with foreclosures myself over the past couple years. dont get me wrong it will vary from state to state and it could be eight out of ten but it is not a definate that it will work on all situations so all i am saying is dont put all your hope in people that say that it will save your home.

Edited: 06/26/2010 at 05:30AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jul 11 '08, 11:41 AM

Originally posted by "gatekeeper"

my stats are from mortgage companies,attorneys,loan modification sevices as well as working with foreclosures myself over the past couple years. dont get me wrong it will vary from state to state and it could be eight out of ten but it is not a definate that [b]it[\b\ will work on all situations so all i am saying is dont put all your hope in people that say that [b]it[\b] will save your home.

What is " it" in this case? From your previous post, " it" would seem to be loan modification or short sale. Short sale doesn't seem to apply, since that usual results in the previous owner moving out.

How about explaining your process here? Or, better, in the General Foreclosure forum?[/b]

Edited: 06/26/2010 at 05:30AM

Jon Holdman, Flying Phoenix LLC

Romeo Abenoja

Residential Real Estate Broker · Englewood Cliffs, New Jersey

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Jul 13 '08, 09:08 PM

I'd be interested in what your process is also. I have a client that is need of help and I'm looking for alternative options for her.

Edited: 06/26/2010 at 05:30AM