Foreclosure is the legal process a lender uses to formally terminate a borrower’s ownership in property, ultimately reclaiming the deed for itself. The rules are essentially the same for primary homes and investment property. Whenever you sign a mortgage, you give the bank a “collateral interest” – or lien – against the house. If you default in even one payment, the lender has a right to foreclosure immediately, although typically banks do not start court proceedings until you are three or four months behind. If you are delinquent in a mortgage you have no defense to the foreclosure, however there are legal maneuvers that can be used to slow the process. If you receive a Notice of Intent to Foreclose or a Summons, a clock has begun to tick. You could lose all rights of ownership in as little as seven months. It is imperative you contact legal counsel to look at some property saving alternatives and ensure all of your rights are protected.

A loan modification restructures terms of the original mortgage. The most requested changes are lower rate and longer repayment schedule. Despite popular belief, there is no absolute right to modify (even under the Obama Plan) nor will a loan modification ever reduce your loan balance. Lenders have the power to reject any application that does not meet their criteria. Formulas, guidelines and calculations completely unknown to you will be applied to your financial worksheet. Many homeowners, although anxious to modify, make innocent mistakes in their application that ultimately lead to denial. This can be very disheartening to the family who believed that modification would automatically save their home. Additionally, the process can take several months. If you were behind to begin with (or do not make payments while waiting for your answer) and are denied, you must catch up on everything past due to avoid foreclosure. Although it is free to apply, having assistance from a professional who is familiar with the guidelines can significantly improve your chances of success. Aiossa and Associates has a dedicated team of modification attorneys with an amazing 98% approval rate. Be aware that it is unlawful for anyone but a licensed attorney to charge for modification services. To learn more about President Obama’s program and how to increase your chances of approval, click here.

Most people believe that once a home is lost in foreclosure, their liability to the bank has ended. In fact, if a bank cannot sell your property for enough to satisfy the mortgage, any shortage remains collectable against you. A debt placed against a homeowner for the difference between their mortgage balance and foreclosure sale proceeds is known as a deficiency judgment. Because home values have decreased so much, properties seldom sell for enough to satisfy the foreclosed loan. This means that more and more borrowers are being exposed to deficiency liability with their lender. Some banks routinely sue after the foreclosure and collect their deficiency judgment against your bank account or wages. Legal techniques are available to limit a bank’s collection powers on a deficiency. There are also ways to eliminate the debt completely. If you are facing a foreclosure with little or no equity in the property, be sure to seek skilled legal advice to avoid a deficiency collection action against you.

A deed in lieu is a document that gives instant ownership of property back to the bank. It enables them to sell your home immediately, without completing a foreclosure to formally terminate your rights. In previous years, banks would forgive all mortgage debt in exchange for a deed in lieu. Today, more and more lenders are preparing their instruments with language that still allows them to sue you later on if they do not sell your home for enough money at auction. In addition, a deed in lieu requires immediate surrender of the house. By comparison, a foreclosure gives you more time to remain in the property - arranging for relocation or exploring options like modification or short sale. In fact, most banks prefer a short sale (or modification) to the deed in lieu. By finding your own buyer and keeping the home occupied until closing, you save your lender the burden of securing and then selling a vacant home. It is also important to remember that a deed in lieu only satisfies your first mortgage company. It will not eliminate second mortgage or home equity debt like a short sale will.

Being delinquent on a mortgage is no cause to abandon hope. Many people successfully pursue loan modification or bankruptcy and completely restructure all debt. Others attempt to sell their home to an investor, family member or third party who allows them to “rent” the property back for a period of time (typically one to three years) before buying the home again. This so called sale lease back arrangement allows people to move at a more comfortable pace as they re-establish credit and income without giving up their home. Although popular in theory and appealing at first glance, this technique can also be very dangerous. Beware anyone who knocks on your door or sends you a solicitation letter filled with glowing promises. Predatory buyers and unethical investors will offer completely empty guarantees about your buy back rights only to evict you as soon as the closing papers are signed. If you desire a legitimate sale lease back agreement, it is critical you consult an experienced real estate attorney who can draft the documents properly. You must be sure to fully protect all of your property rights while minimizing the risks created by becoming a tenant in your own home.

If you have decided it’s time to sell, choosing the right team in this market is critical. Whether you have equity in your home or opt for a short sale, the right realtor and attorney will ensure a smooth, successful closing. In a declining market, it is difficult to find qualified buyers willing to pay top dollar. Because our law firm concentrates exclusively in real estate, we have the privilege of working with only the finest realtors in the business. Our agents are carefully selected not only for their industry experience and salesmanship, but for their consistent ability to command high prices in a soft market. More importantly, all of our affiliates are fully trained in the oftentimes unfamiliar short sale process. As times continue to change, sales contracts, inspection issues and financing obstacles have become increasingly complex. An attorney who does not specialize in real estate can no longer be relied upon to know all that is required to protect you. For the homeowner who demands perfection at every stage of closing, choose Aiossa and Associates as your preferred real estate attorney. To create an even stronger team, allow us to recommend a top agent capable of handling your most challenging sales needs.

In a short sale, you are settling a debt for less than the full amount owed. Many homeowners have heard they will be required to pay taxes on the forgiven difference. Strictly speaking, loan forgiveness is taxable income in the eyes of the IRS. Following a short sale, sellers may receive a 1099-C for the settled amount written off by their bank. Even if you did not receive this form, your lender may still have reported the transaction to the IRS. If you don’t disclose the sale on your tax return and the IRS has information of the sale, you could get a tax bill or worse, an audit notice - but do not panic. There are several very effective exceptions to the short sale forgiveness of debt rule that will enable you to avoid tax consequences all together next year. If you are facing a foreclosure or considering a short sale, consult a qualified tax professional when filing for the relevant year. As your legal counsel, Aiossa and Associates will also complete a solvency test for you prior to close to confirm that you will not have to pay any taxes on the sale.

There is a common misconception among borrowers that once a bank takes back property, whether in foreclosure or by deed in lieu, all financial obligations to that lender simply cease. In reality, mortgage debt can survive the loss of property, and if the bank suffered any shortage as a result of your transaction, you may be obligated to reimburse that short fall even after they sell your home. Often, you will not even see the collection coming until a garnishment hits your bank account or paycheck. Lenders can even put a lien on other property you own – whether or not it had anything to do with the defaulted mortgage. If you are facing foreclosure, it is important to protect all your remaining assets to the furthest extent possible. Both bankruptcy and short sale, if used properly, can save a borrower thousands of dollars in deficiency liens down the road. Just remember that banks are equally skilled at collecting money from borrowers, and asset preservation can be complex. Each individual case will vary so you should begin to explore your options early. Be certain to work with a real estate attorney who understands asset preservation and makes this goal an important part of your overall sales strategy.

The overwhelming majority of realtors and attorneys have little or no familiarity with the short sale closing. Many even believe the entire process only came into existence as a response to the relatively recent decline in home values. In fact, short sales have been around as long as mortgages themselves. A short sale occurs anytime your mortgage lender accepts less that their full payoff demand at the time of closing. Despite the growing number of mistakes being made by amateur practitioners, a smooth and successful short sale is virtually guaranteed when handled by the right professionals. A winning short sale attorney is one part lawyer, one part realtor, one part appraiser and one part poker player – but even with the right tools, there is absolutely no substitute for seasoned experience. Ms. Aiossa, the founder of Aiossa and Associates, has been successfully negotiating short payoffs since establishing the firm in 1999. The short sale closing is her niche, and we have successfully negotiated many millions of dollars in mortgage reductions over the past year alone. Do not trust your short sale representation to anyone less than an accomplished professional. To learn more about our highly specialized short sale services, click here.

One very unfortunate by-product of the foreclosure process is the negative footprint it leaves on credit. For most homeowners, it is natural to want to rebuild your credit profile after a traumatic financial event, and credit repair is the first step people usually take. Despite the soundness of this thinking, you must resist the quick fix impulse. Countless “credit repair” specialists claim to have proven techniques that will “erase bad credit.” Most of these companies are predatory groups that charge outrageous fees to do what you can often achieve on your own. For those consumers who still want professional help, there are legitimate service providers with proven techniques to legally challenge negative reporting. Please contact one of our credit specialists for a no cost evaluation. At Aiossa and Associates, our mission is to serve your real estate needs at every level. We believe credit enhancement is a critical part of that process and we would be pleased to offer you a trustworthy referral.

Bankruptcy can sometimes be an effective means of either saving your home or eliminating deficiency debt after a short sale or foreclosure. It can also be used to prolong occupancy while you consider your other options. The decision to file a bankruptcy is not one to be taken lightly. It can be costly as well as damaging to your future plans of homeownership if you do not proceed properly. Due to the new and stricter bankruptcy laws, there are rules governing whether you can file a 7 or 13. Many people seeking to extinguish all debt are forced into expensive monthly repayment plans on top of their current mortgage. The end result is a burden they cannot carry. If you own property, recognize that bankruptcy is a strategic tool most successfully used as part of your overall real estate plan. In order to take full advantage of all the resources our law has to offer, be sure to retain a bankruptcy attorney who will work hand in hand with your real estate team. In this way, every tool in both practice areas will be used simultaneously to your benefit.

Most homeowners facing foreclosure have only a vague idea how long the eviction process will take. Some never even know the matter is concluded until a sheriff arrives at their door. There are legal steps you can take to slow down the court proceedings, prolonging your move out date and giving you more time to plan. If you are in active modification or short sale negotiations with your bank, we can typically extend both judgment and sale dates month after month. In fact, if a properly documented short sale package is under review, we are frequently able to postpone the sheriff auction indefinitely. A forced move can be very difficult on a family. Relocating on short notice, or when you are facing uncertain dates, can bring about even more stress. The right attorney will keep you advised of important dates and help you achieve many extensions. It is important that you seek counsel early on because even one missed court date can deprive you of valuable occupancy rights.

As the media continues to buzz about the $700 billion bank bailout and Obama’s sweeping loan modification plan, homeowners are asking where do I apply for my share of relief? Unfortunately, Congress never intended the aid as a lifeline for consumers and the federal modification program is voluntary on your bank’s part. Federal money will be used to buy bank stock, insure bank losses and purchase defaulted loans – but there is no check on its way to your mailbox. Although the modification program does provide for a $1000 annual rebate for approved candidates, the government does not directly restructure home loans nor can they force a bank to modify. Contrary to popular belief, the government is not paying down loan balances nor are they forcing mortgage companies to work out terms with people in default. What they are doing is offering government insurance to banks who agree to refinance qualified applicants and urging lenders to restructure delinquent loans under more affordable terms. Beware of costly companies who claim to be working through a government sponsored or affiliated agency. There is simply no such thing. Fortunately, you can still take advantage of federal bailout consumer protections if you apply properly. Contact Aiossa and Associates for a complete evaluation of your eligibility today.

Many people struggling with loan delinquency or pending foreclosure fear they will never own a home again. In reality, there are many ways to heal your credit and restore your homeownership eligibility. Certain loan programs impose a brief waiting period before you qualify for a new mortgage. Others require counseling before you are a candidate for your next loan. In the end, the most important thing to remember is that your best defense to a loan denial is a good offense. Know your credit profile, work to enhance your scores whenever possible, and seek out professional assistance to help you achieve your goal of homeownership. Aiossa and Associates is affiliated with a wide variety of lenders and credit experts. We welcome your questions about credit challenges and fair credit reporting. Our qualified mortgage partners and counselors can certainly help you achieve the results you desire. Allow us to help you overcome your current home ownership obstacles. Our team can build a bridge between your current credit situation and your next successful closing.

For most people, a home is typically the most valuable asset they will ever own. For that reason, it is critical that you take control throughout the entire home ownership cycle – from acquisition and mortgage through marketing and sale. It is our goal to identify each and every one of your privileges as a homeowner. These include the following protectable rights: You have the right to understand what a mortgage lien is. You have the right to demand that your bank adhere to all consumer protection and mortgage disclosure laws. You have the right to proper notice and opportunity to cure any defaults. You have the right to legal and statutory defenses in the event of a foreclosure. If your bank does not adhere to the laws, you have the right to judicial intervention. If you are struggling with your payment, you have the right to request that your bank review your loan under the new federal modification guidelines. And if you need help navigating these and other real estate laws, you have the right to professional legal representation. Know your rights. Call Aiossa and Associates today.

Perhaps you are a traditional buyer or seller who simply wants effective and skilled representation at closing. Perhaps instead you are a homeowner facing foreclosure or short sale and you are in need of precise legal guidance. Maybe you are an investor curious about what opportunities the current foreclosure market has opened for you. You may even be a homeowner anxious to modify a loan but you are unsure how to maximize your approval chances under the new Obama guidelines. Whatever your personal real estate needs may be, our clients share one common goal – to obtain current and expert legal advice. Remember that most property related matters are time sensitive. Purchase contracts, foreclosures, modification applications and short sales all have important dates that, once passed, cannot be recovered. It is critical that you seek competent legal representation as early in the process as possible because if you do not protect your property rights today, sometimes tomorrow may be too late. To preserve all of your varied and valuable real estate rights, call Aiossa and Associates for an expert, no cost evaluation today.