Avoiding Foreclosure

Get help in avoiding foreclosure
of your home through short sale!

Note:  Prevent foreclosure! Help is available nationwide in negotiating with your lender to avoid foreclosure of your home.  Some say that this is something that you can do yourself.  That's true, but there is a definite advantage when a professional negotiator is doing this for you... the same reason why doctors and lawyers consult with other practitioners rather than handling their own cases.  Why risk it?

 Are you behind with your mortgage payments?

We can help... but first, let me explain that you're not alone.  Some homeowners face this problem due to death in the family with the main wage-earner passing away.  Others lose their jobs, incur huge medical bills or experience some unavoidable disaster.  However, many are faced with this situation because of the type of mortgage they obtained when money was easy to get.

When money was easier to get, lenders were lax in extending credit.  Not that they extended credit to non-deserving borrowers.  However, the amount they allowed borrowers to borrow in some cases is more that what they normally would because the money supply was plentiful.  This left little room to maneuver when homeowner's financial situation changes, or when monthly payments go sky high when interest rates go up.  This is particularly true for those who obtained adjustable rate mortgages (also known as ARM), or interest-only loan.

There are several alternatives to getting out of this dilemma; but one alternative that is not right is to not do anything.  That, really, is not an alternative!  Instead of sitting tight "hoping" that things would change, you should be proactive in looking at alternative ways of getting out of this difficult situation.  You may tend to be in denial, and always hope that things will change, instead of facing reality and look for alternative means of solving the problem.  Some homeowners who are in this situation simply give up and mail their keys to the lender while some think of filing for Chapter 7 (where debtor is released from, and does not have to pay for, the debt) or Chapter 13 Bankruptcy (where you are on court monitored payment plan) protection.  While others still try to sell their home at inflated prices, hoping that they will get sufficient money to payoff all their debt.

It will be prudent for you to look at the short sale alternative after you have attempted to renegotiate the terms of your loan.  This is the choice of last resort--yet very effective if you qualify.  With short sale, there is no reason for anyone in financial hardship to suffer from foreclosure.  And, the income from the foregiveness of debt may not be taxable until 2012.

The book, Short Sale, A Practical Approach is now available at Amazon.com.  It will show you in greater detail what it takes for lender to approve a short sale transaction.  It covers information about the patience required in dealing with the lender, and how to successfully negotiate a short sale by understanding the process.  Here's more information on this book.

How Can Danny Cachuela Help?

You must work with someone who is not in the business of buying these properties (also known as distressed properties).  People who buy distressed properties usually buy them at "low ball" prices.  This is because they are in the "business" and they have to make money out that purchase.  Instead, work with those who are in the business of helping homeowners avoid foreclosure.  But be sure to work with a reputable one.  There are many scams out there who take advantage of people who are having difficulities.

Danny Cachuela is not in the business of buying pre-foreclosure or foreclosure properties.  He is a licensed real estate agent (in Pennsylvania and New Jersey) who is knowledgeable in handling short-sale of homes.  This is a specialty since many agents do not even know what a short-sale is; and those who know generally do not want to be involved in it due to its complexity compared to a regular home sale.

A home that is in pre-foreclosure status is not necessarily for sale.  The owner may still be pursuing other options to cure the default, which could include re-financing of the loan.  However, an offer from a financially-qualified buyer could sometimes be the best solution to get the owner out from under the impending foreclosure.

Danny Cachuela can help you avoid foreclosure in the following ways:

1. You will receive assistance in preparing a financial analysis to establish and document your financial difficulty, or to determine eligibility for short sale.
2. You will receive assistance in preparing a letter to the lender to give you some time as you are pursuing the alternative of selling your home as a short sale.
3. If you qualify, we will help you sell your home as a “short-sale.”  A short-sale is a sale of your property for a price where your net proceeds from the sale would be less than the amount you would need to payoff your loan.  This is sometimes necessary to avoid foreclosure and frequently the case in a “down” market.  In this situation, remember that the lender will, in effect, be paying for the commission.  Thus, for those who are trying to sell their own home as a "For Sale By Owner" to save the commission, this will no longer be necessary.

4. We will prepare for you a Comparable Market Analysis (also known as CMA or Competitive Market Analysis) to establish a realistic asking price and prepare a Net Sheet for you to present to the lender. The lender will usually ask for a Broker Price Opinion (BPO), but we do not get involved with that because of perceived conflict of interest.

In detail, here's what Danny Cachuela will do:

1. Handle your administrative file
2. Handle negotiation with your lender
3. Prepare your Net Sheet (Estimated HUD-1)
4. Organize the entire short sale package
5. Submit the complete short sale package to your lender
6. Resubmit the package because bank lost it (sometimes as much as four times)
7. Confirm bank receipt
8. Coordinate BPO or Appraisal
9. Follow-up with your Lender (many, many times)
10. Negotiate settlement with lender's loss mitigator
11. Receive discounted mortgage payoff letter
12. Fax you the approval from the bank
13. Coordinate closing
14. Keep you updated everytime your file is updated

The key benefit to the borrower is that it increases borrower's credibility in dealing with the lender because borrower employed the services of a professional.

About Danny Cachuela

Danny Cachuela, with his financial background as a Pennsylvania Certified Public Accountant (inactive), is uniquely qualified to provide this service.  As a Realtor, he will be able to help you in the sale of your property.  His experience in negotiation working as a former CEO of a multi-million dollar corporation in is invaluable in helping you go through the negotiation of short-sale with your lender (sometimes, multiple lenders).

If he sells your house as an Associate Broker of Prudential Fox & Roach Realtors, he collects his fee in form of commission from the sale of your house, just like a traditional sale by a Realtor.  That means... no sale, no fee.  And if it turns into a "Short-Sale," the net effect is that your lender is the one paying his fee -- not you.  He could explain this further.  You can preview his Real Estate website at www.ShowMeTheHome.com.  And, for more information on short sale, go to www.ShortSaleSecretRevealed.com.

For more information, simply call him at 610-356-8347.  His "Short Sale Negotiation Services" are offered nationwide.

IMPORTANT:  The information provided on this website is designed for general information only.  Before acting on any matter contained herein, you must consult with your personal legal counsel, tax and financial counselors.

Danny Cachuela, CPA
Associate Broker
Prudential Fox & Roach Realtors-Newtown Square
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Office:  610-353-6200, Ext. 385
Direct:  610-356-8347
Cell:  610-213-6771

danny@cachuelateam.com