Raffi Tal has been successfully executing short sales since the early 90's and currently oversees all files as the company’s EVP. Under Tal’s leadership, I Short Sale, Inc. has become one of the nation’s leading firms in short sale volume. As an authority in the field of loss mitigation, Tal has been a guest speaker on the issue in various conferences, seminars and for a variety of media outlets.
While car companies and big banks are making money again, homeowners everywhere are still staring down the barrel of foreclosure 2011. Lenders are redoubling their efforts in 2011 on the foreclosure front, more adjustable rate mortgages will “reset” this year to monthly payments up to 50% higher than current payments, and millions of unemployed Americans will struggle to keep their mortgage loans current.
The good news is that distressed homeowners have become more knowledgeable about loan modification options and are proactively pursuing their lenders to modify their loans. The bad news is that lenders are not making loan modifications to make it easier for borrowers to make payments. They are “mitigating their loss” to keep properties from becoming bank-owned. As a result, the layers of documentation generated not only confuses borrowers, it’s confusing to lenders as well. Many loan modifications are delayed or denied because of documentation snafus.
The foreclosure crisis has given rise to a cottage industry of loan modification firms and counseling services --- some reputable, some not --- that take advantage of homeowners’ compromised position by making unrealistic promises or raising expectations. And as monthly mortgage payments go from 30 days delinquent to 45 days delinquent to 60 days delinquent, borrowers feel more and more pressure to try anything to keep from losing their homes.
When a loan modification is not an option, a short sale is a much better alternative to foreclosure. A short sale connects the homeowner with a buyer who will purchase the property for a lender-approved price that is lower than the outstanding loan amount. Not only does this satisfy the lender’s obligation, it avoids the long-term, negative ramifications of a foreclosure on the homeowner’s credit.
The best and most reliable route to enact a short sale is for homeowners to work with an experienced, reputable short sale company that will manage the entire transaction from negotiating with the lender to locating a buyer for the property to handling all the paperwork from start to finish. As the short sale process can be overwhelming for homeowners facing the economic trauma of a possible default on their loan, it makes sense of them to partner with a specialist with proven experience and success executing complicated short sale transactions.
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