Gold Walk Away Program
What is the Gold Walk Away Program?
The Gold Walk Away Program is were the homeowner either chooses to do a short sale or tries to restructure their loan. In this section we will discuss the procedure for the short sale. If you are interested in the real estate loan restructure than click the "keep your home" tab.
The Short Sale Process will include:
- Compiling Short Sale Package
- Property Evaluation
- Realtor Interview & Listing
- Loss Mitigation negotiation
- Communicating with trustee's and bank
What is a Real Estate Short Sale?
With the increase in Real Estate Foreclosures the “short sale” option has become more popular. A short sale is when the lender agrees to accept less than what was contractually agreed upon at the close of the purchase or refinance. Short sales are not a new concept but with the flood of foreclosures in the market place they have definitely been pushed to the fore front of today’s real estate news.
Many people wonder why lending institutions would accept a short sale and take a loss. The reason that banks are willing to take a short sale is to avoid the time and expense of a foreclosure.
When a borrower is in default on a mortgage they not only owe the back payments but also may owe late fees, property inspection fees, attorney fees, etc. This can add up quickly and eats up all of the equity the borrower had in the property. If the homeowner is unable to bring the account current the lender will then foreclose on the property. Lenders can typically lose up to 40% of the value because of the extra costs involved with foreclosing on a property: selling costs (realtor fees and title fees), attorney fees, court costs, lost interest, eviction costs, property maintenance costs, and in this market the possibility that values will decline. Foreclosing on a property can also take up to two years in some states. Therefore, it is sometimes in the best interest of the lender to accept the short sale.
It also can be in the best interest of the borrower. They will not have to endure the time and stress of a foreclosure and their credit may not be as adversely affected as it would with a foreclosure. It is quicker and easier and does not subject the borrower to the embarrassment of a foreclosure.
It also can be in the best interest of the borrower. They will not have to endure the time and stress of a foreclosure and their credit may not be as adversely affected as it would with a foreclosure. It is quicker and easier and does not subject the borrower to the embarrassment of a foreclosure