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Dear Homeowner,

Throughout Loudoun County, Fairfax and adjacent counties, many homeowners are  "underwater". What it means if they owe more on their mortgage than their property is worth.  In a number of circumstances, it becomes more difficult to make the mortgage payments and the drop in values often means not being able to refinance or sell.  If you are in a situation where you are encountering these difficulties, don't wait. The sooner you talk to your Lender and find out what your options are, the better chances you have to get back on your feet.  Foreclosure can be avoided.

As a CDPE, my first goal is to help you stay in your home.

1. Check the "Foreclosure Solutions" page to see if some of the options available might apply to you, then check the various programs under Resources.

Be aware that very few Loan Modifications actually work out. You may find that your payments will end up being more than before. Also be aware that some of the new programs being talked about have not been approved yet. Don't let anyone talk you into providing money upfront in order to help you.

2. Talk to your Lender regardless of whether you think it will lead somewhere or not. The Lender may turn you down, but don't be discouraged.  Contact a qualified agent immediately and find out how you can get help.  Virginia is a non-judicial state. When you receive a notice of default,  right now it takes approximately 106 days to go to foreclosure. So the more pro-active you are, the more chances you have to be able to avoid foreclosure.

Example 1:

The homeowners had not yet stopped making payments but the wife, who was the primary breadwinner, had just lost her job. Their savings were being quickly exhausted. They decided to be pro-active and contacted me. They had bought the house for $450,000 and it was now worth around $320,000. We  put the house on the market immediately at market value. We presented the Lender  with a very good contract from a buyer with reasonable expectations as to short sales and the time it takes to complete them.

Example 2:

The homeowners had contacted their Lender and been turned down for refinancing or any other help. I met with them and we were denied help under some of the Government programs available. Sometimes, it is not necessarily the Lender who makes that decision but the Investor behind the Loan. We persevered and put the house on the market immediately. It was priced according to condition and we eventually received a serious offer which we presented to the Lender for a traditional short sale. There was some back and forth because of the Investor's requirements but eventually, with everyone's cooperation, it took only 2 months to close.

Here are some of the things to consider when you need to sell but owe more than your house is worth:

• Short sales are not easy but they can happen. They require a tremendous amount of  patience and commitment on the part of the homeowner and their agent. Communication and willingness to provide good, accurate documentation and diligently meet timelines is key to the process.

• Virginia is a "recourse state". This means that the Lender can pursue a deficiency against you. While you have a chance to negotiate a waiver in a short sale, you do not have that option in a foreclosure. 

• Contrary to what you may have heard, the major Lenders are making a huge effort to increase short sales because foreclosure costs them even more of a loss.

• When considering a short sale or foreclosure, you will need to consult a Tax professional and find out what your tax liability might be. 

• If you live in an HOA: The one thing you need to do is continue to faithfully pay your homeowners dues. This is the one area that can prevent a short sale from happening. HOA's can actually foreclose on a homeowner faster than your Lender can.

• If you have a Security Clearance: A foreclosure or bankruptcy will disqualify you for a Security Clearance, therefore jeopardizing your job and disrupting your career choices. You may be OK in a short sale but if you are military, you will need to speak to your Superior and if you are civilian, you will need to speak to your HR department.

Every situation is different and needs to be considered individually. You may have more questions after reading all this. Please don't be afraid to ask. Any information you give me is strictly confidential and stays between you and me. I am here to help to the best of my knowledge and ability. 

Marielle van der Burgh, Direct: 703-298-8576

email: marielle@isellfairfax.com or marielle@teamleesburg.com