When It Makes Sense to Sell – Avoiding Foreclosure

Business Real Estate


FAIR Program, a real estate brokerage designed to assist homeowners facing foreclosure follows 7 basic principles that all agents must comply to:

  • Do Good
  • Transparency
  • Diligence
  • Passion
  • Growth-Profitability-Stability
  • Be Healthy
  • Dream Big

The FAIR Program or FAIR uses the government’s Making Home Affordable HAMP guidelines to pre-qualify hundreds of homeowners for free loan modification services. To date, the company has saved more than $10 million in real estate throughout Los Angeles through its loss mitigation efforts. But even when a decrease in principle percentage has resulted in hundreds of dollars being saved, many homeowners cannot afford their new mortgage payments and end up in foreclosure, unless, they agree to a short sale or standard sale of their home through FAIR.

While many people believe that loan modifications are the cure to the ever growing problem of foreclosure in the state of California, a number of factors make it so that

Getting approved for a loan modification can be just as disappointing in the end.

Difficult Approval Process

While lenders have typically been kinder to clients in recent months, there are still stories of some lenders approving loan modifications only to rescind those offers during what is called “the trial period”. It’s a heartbreaking process when an owner is approved with hundreds of dollars saved in payment reduction, only to have a lender deny their loan and request immediate payment of the principle lost during that time.

Confusing Paperwork

The main reason homeowners are often denied their loans is found in the often confusing terms of the paperwork. The lender will often state that homeowners are pre-qualified for the loan which leads homeowners to think the process is over and done. What it really means is that the person is within the eligibility requirements set by the government.

What the homeowner doesn’t know is that the investor who owns the debt still must provide approval for the transaction. Homeowners should know that nothing is final until it’s in writing.

No Room for Mistakes

Homeowners have to be aware that following lender instructions down to the letter is of the utmost importance. Homeowners that miss directions or improvise on lender requirements often end up getting burned. For instance, one might think nothing of paying more than asked after getting approved for a loan modification, but homeowners can wind up ruining their chances of getting a real approval when exhibiting such behavior.

Impossible to Begin With

Even when all things go well for homeowners, (at the start of the year, 100% of FAIR’s client loan modifications were approved under HAMP), it often makes sense to sell when other financial constraints are taken into account. Health Insurances, utility bills and rising debts can put a huge hamper on one’s income. After the loan is modified, many owners’ expenses fall well above their income.

FAIR Program serves as liaison between homeowner and lender to help get approvals for California homeowners facing foreclosure. But when it simply makes sense to sell, homeowners can also list their homes for sale, avoiding foreclosure and further financial ruin. FAIR even provides relocation services to homeowners who might otherwise find it extremely difficult to convince property managers to approve a lease.

FAIR Program was designed to provide economically fatigued homeowners financial counseling and real world solutions to eliminate debt, increase net worth and jump start the path to solvent homeownership.

To learn more about FAIR Program visit www.fairprogram.org

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