Throughout Loudoun County, Fairfax and adjacent counties, many homeowners are "underwater", meaning they owe more on their mortgage than their property is worth. These are difficult times. If you or someone you know is facing foreclosure, it is important to be pro-active and find out what your options are. Foreclosure can be avoided and you can get your life back.
As a CDPE, my first goal is to help you stay in your home.
1. AVAILABLE OPTIONS:
The following are options for homeowners.
Reinstatement, Forbearance or Repayment Plan, Mortgage Modification, Rent the Property,
Deed in Lieu of Foreclosure, Bankruptcy, Refinance, Servicemembers Civil Relief Act (military personnel only), Sell the Property
For full details on each, please visit the Solutions Page.
2. Government Programs:
If these options are not for you, the next step may be a Short Sale.
What is a Short Sale?
This video will explain what a short sale is:
http://www.youtube.com/watch?v=49sS88Cbsc8
What is HAFA? Program will undergo some changes as of June 1.
This video will give you a brief overview of the program:
http://www.youtube.com/watch?v=8TXx8rKy-Ow
3. Here are some of the things to consider when you need to sell but owe more than your house is worth:
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You cannot be simply "underwater"; you must have a verifiable hardship.
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Short sales 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.
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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.
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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.
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When considering a short sale or foreclosure, you will need to consult a Tax professional and find out what your tax liability might be.
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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.
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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 feel free 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