862 Brawley School Rd, Brawley Point, Ste. 203,
Mooresville, NC 28117
When homeowners know that a foreclosure of their home is imminent or has begun, it may seem as if the world is crashing down around them. To make matters worse, time to act is critical to avoid dire consequences to the homeowners. Being armed with the knowledge of what options are available to homeowners to possibly avoid a foreclosure is a relief in and of itself—it opens up options for the homeowners to consider and act upon rather than feeling helpless. The goal of Drake Law Firm, PLLC is to provide our clients with some comfort of having options to consider, short of simply watching their home slip into foreclosure. We will advise the homeowners of their rights and responsibilities, and take into account what the homeowners short and long-term goals might be so that the best option can be chosen and pursued. Two common options that may be available to homeowners to avoid foreclosure, among others, are short sales and loan modifications.
Drake Law Firm, PLLC represents Sellers in real estate short sale transactions. While many talk frequently of short sales and even attempt to handle short sales themselves without much experience, the short sales process is challenging in many respects and requires extensive knowledge and understanding. In addition to representing Sellers, our Firm assists real estate agents in short sale transactions, helping them avoid various possible issues with the North Carolina Real Estate Commission and various liabilities that can inadvertently occur in short sales. Our familiarity with the short sale process helps our clients achieve the best possible results for approval with their lender or servicer in as short a period as possible.
In a short sale, the sale proceeds are “short” of the outstanding amount owed to the lender, which is secured by the real property. Lenders often have an incentive to consider and accept on offer of a short sale, notwithstanding that it will not receive the full amount owing, because the foreclosure process that it would otherwise have to pursue requires a great deal of time and expense. If the short sale offer is handled by the Seller and its counsel appropriately with the lender and the related parties, the lender may approve the sale knowing that the short sale will often result in a 15% – 20% higher return to the lender than if the lender opted to foreclose. What will be critical to the lender in making its decision, however, will be the lender’s perception of the Seller’s ability, and its counsel, to effectively and efficiently deal with the lender’s process for short sale approvals, as well as all of the related third-party matters in order to request and obtain lender approval, and close on the short sale.
Drake Law Firm, PLLC handles a variety of financing, workout and forbearance arrangements for a variety of clients. With this experience, and having Rich Drake’s unique experience of having extensively represented lenders from the other side of the table, the Firm has a distinctive set of skills and experience to represent homeowners that may be able to avoid foreclosure by pursuing a loan modification with their lender or servicer. In certain situations, homeowners and their lenders may find it mutually advantageous to modify the homeowner’s current loan to provide relief to the homeowner so that the loan will not continue in default, can be kept current by the homeowner going forward, and the homeowners may remain in the home. Loan modifications can take various forms, depending on many factors, including several federal modification plans and internal bank modification plans. It is not uncommon for the negotiation of such loan modifications to take some time. Likewise, certain qualifications, such as ongoing stable income will be required. Other requirements, such as an additional down payment or an extension of the length of the loan may be required. Such an alternative, however, avoids foreclosure and avoids much of the impact on the homeowner’s credit ratings, as opposed to a foreclosure or a short sale.