Please fill out this short form

With all of the recent news about the state of current Real Estate market there is a lot of misinformation and misunderstanding about the Foreclosure and Short Sale processes. Don't make one of the biggest financial mistakes of your life based on inaccurate and incorrect information. There is help out there and in most cases we can help. We can provide you with confidential guidance and alternatives to having your home foreclosed on. When you contact me I am dedicated to serve you honestly, fairly and with kindness. 

The following is a brief list of the most commonly asked questions and answers about the Foreclosure and Short Sale Process.

How long does it take for the bank to Foreclose on a home owner? In California the total process takes 6 months from the date of the first missed payment until the bank transfers ownership back to the mortgage holder. This process is called a Trustee Sale and it usually happens at the local county court house.

I just received a letter from my mortgage company indicating their intent to start the foreclosure process, what should I do? Don't ignore the letter and act quickly to contact us to review your options. Foreclosure letters come in many forms and each could represent different time lines for you.

Is it true that after the bank takes the house back, we will be locked out? Yes. However by acting quickly and as soon as you believe you can no longer afford to keep up with your payments  you may be able to prevent this all together. Again, the key to avoiding this process is acting fast and contacting a professional like us to act as your agents in dealing with the banks. Most importantly, the bank does NOT want to own your home and are more than willing to work out an alternative option to foreclosing on your home. Don't wait until a deputy and lock smith show up at your door, that time it is too late!

I'm so worried that I can't eat, sleep or function. I'm embarrassed and I feel all alone, how can you help? We are dedicated professionals and our job is to educate you as to the options you have available to you. When you contact us we are here to serve you honestly, fairly and in the strictest confidence. We are here to listen and guide you through this difficult time. You are not alone and currently 43% of all homes listed in today's MLS are in some form of the foreclosure or short sale process.

I don't have the money to pay you and there is no equity left in my home. How will you get paid for your services? This is a job and we do need to get paid too. However, when selling your home through the short sale process the bank pays our fees--NOT YOU.  Once you contract our services, we take over the negociating process with the bank. If we don't sell your home, you are under no obligation to pay for our services.

Recently it seems like everyone knows about my difficult financial situation. I have been getting flyers, letters, postcards and other solicitations from people that say they can help. How did they find out about my situation? Can any of them help? Once you have missed 3 payments a Notice of Defult is recored with the County Recorders office stating the banks intention to foreclose on your home. A foreclosure is a public process. Once the notice is filled there are several companies an individuals who take the information and attempt to market their services to you. Your information will even be sold over the internet to hundreds of companies such as Realtytrac. This information is even sold to some less than ethical parties who make promises they can't ever fulfill. Remember anyone who contacts you is trying to make money.

What is a Short Sale (short pay)? When your lender agrees to accept less than what you owe to discharge your mortgage and sell your property. The lender will ask you to contract a local realtor to do a Broker Price Opinon on your property. They will also send you a paperwork package for you to completein order to prove your hardship. We can walk you through the hardship package and advise you on the proper way to complete this package to expidite the process.  

Are you a Law Firm? No, we are a team of Licensed Real Estate Professionals who work closely with the banks and their work-out departments. We would be happy to refer you to the Real Estate Attorney that we use for all legal matters.

I have been contacted by companies offering to "Pay Cash For Your House" are you any different? YES, We are not in the house buying business. An investors willingness to buy your house is based on equity. If you have a lot of equity someone will buy your house at a discount because they know they will "flip" it or rent it using your equity to profit.

Why would my bank accept less money or work with me? Any lender can establish an estimated cost of loss if you default. Most banks and mortgage companies even have a Loss Mitigation or Prevention department. As a general rule "Lenders" do not want to own property. They are lenders and not property managers. The cost to maintain your property after they take it from you includes but is not limited to: taxes, insurance, maintenance, etc. The Bank's "loss" can continue to grow long after you are gone. Even at a sale the Bank expects to get much less than market rate because it is not an ideal way to sell property. In most cases a preemptive offer or attempt to sell your property, even for less than you owe, will actually be a better option for the Bank.

How does a short sale affect my credit? If we can sell your property before a foreclosure sale it will typically show up as "paid" however the lender does reserve the right to make a notation typically "less than originally owed". The best way to preserve your credit is to act quickly. The actual foreclosure sale and subsequent judgment for the sale difference is what you MUST avoid. Your credit report will show the sale and in most cases a large judgment against you for the banks losses.

Are there tax consequences if the lender forgives some of the debt? YES, there might be. Your Lender will report the debt as a tax loss. Similarly you will have to account for the gain. In most cases if it is a primary residence there are 5 situations that will forgive the tax burden. 1. Insolvency - your total debts exceed your total assets at the time your debt was settled or deemed non-collectable 2. Bankruptcy - the debt was already discharged through a bankruptcy proceeding 3. Indebtedness due to certain real property business losses 4. Indebtedness due to a qualified farm expense 5. Discharge of your debt was treated as a gift.

The sale date is coming fast, do I still have time to work with the bank? In most cases the Lender will make every effort to work this out before the actual sale. In fact, they will ususally review offers right until the actual sale date. You also might be able to take action that secures more time. However, you must act very quickly and call us for a free consultation.

What will I need for the Lender? Most Lenders will require information from you. Essentially it is a reverse loan application. Instead of convincing the lender that you are credit worthy, your data should indicate your inability to pay. This may include: personal hardship letter, tax returns, pay stubs, bank statements and etc.

I heard there are exceptions or different rules for owners whos families are in the Military. Is there any assistance for Military families? Yes, Mortgage relief is available for military personnel under the Servicemembers Civil Relief Act (SCRA). It prohibits the sale, foreclosure, or seizure of service member property secured by the mortgage during the period of military service, or within 90 days thereafter. However, there are some stipulations.

Should I try and sell my house myself? FSBO (for sale by owner) is always an option while you own the property. Most Lenders will require that you list your home for sale with a REALTOR who subscribes to MLS. It is a proven and the most credible method of selling property & for the highest price in the shortest time. The Listing Agreement is often proof of your willingness and attempt to sell. Which could secure more time for your house to sell.

I'm ready to work with you, what's next? You need to call us for a brief interview. We will get you three documents that you must sign before we proceed. a) Lender authorization letter which will allow us to communicate and get information from your Lender. b) Listing Agreement which will allow us to market and sell your property. c) Property disclosure statement verifying the condition and items in your home.

Is this legal? YES, We do not condone any fraudulent activity. Everything that we do for you is done legally and negotiated with all parties involved.

What options do I have? The options available to you depend on a couple of factors. a) the immediate disposition of your mortgage (what stage the mortgage is in) b) your goals, concerns and objectives. Options we might review with you include: Pre-Foreclosure Sale, Short Sale, Deed-in-Lieu of Foreclosure, Chapter 13 Reorganization of Consumer Debts, Do Nothing, Reinstatement Plan, Repayment Plan, Loan Modification, Loan Restructuring, Loan Refinance, Loan Forbearance, Assumption Partial Claim, and others. Please make sure you have exersized every option before you give up, we are here to help.

I have a second mortgage on my property. How will that get paid or go away? In this market there is no second or third lien holder who has any interest in foreclosure. In fact the worst thing they could hear is that the 1st position lien is going to foreclosure. When the 1st position goes to foreclosure they are guaranteed to get nothing (in the current market). Many second position lien holders are settling for as little as $1000. Most 1st position investors are setting policy to buy 2nd position for as little as $1000. Everything starts with an offer on your property. The offer gets submitted to the first lien holder with a proposed HUD. If the second position is completely left out we usually pull a little from the first to satisfy the second. (on the proposed HUD) . A non-performing or "bad" loan is not good for the bank to have on their books. It hurts their loan portfolio and ability to borrow more money. In many cases it is better to accept something just to close out the loan.

Finally, contact Michele Vaughn AS SOON AS POSSIBLE. By calling today we can schedule a discrete and confidential  appointment to review your options. We'll will explain how we can help you, and determine if your situation could qualify for Loan Modification or the Short Sale Process.

Michele Vaughn, Professional Realtor & Pre-Foreclosure Specialist

Don't Lose Your Home to Foreclosure! Call me for the Help you need at 949-295-7171.

Once you have received the "Notice of Sale" or "Notice of Default" you will receive conflicting information about how you should proceed. Before you take any action please read the following list of Do's and Dont's pertaining to your property.

Things Not to Do:

Suggestion #1) Don't abandon the property. From the time you first receive notice of mortgage default from you lender, the foreclosure process can take up 6 months (and often times, even longer) before you will be physically removed from your home. It is imperative for you to maintain your home as your primary residence in order to delay the foreclosure process. Most banks and mortgage lenders will not even consider your application for assistance if you abandon the property.

Suggestion # 2) Don't ignore correspondence and other notices sent to you by your mortgage lender or the legal representatives (attorneys) of the lender. These notices often contain pertinent information such as response deadlines, court dates and places, etc. If you ignore these notices, or fail to respond to them, you may lose valuable rights to defend yourself in court.

Suggestion # 3) Don't make partial mortgage payments to your mortgage lender, unless you have received specific written approval from your lender to do so. Once you are in default (Over 60 Days Past Due on you loan) partial payments will be applied to interest/penalties only, or put into a special "suspense account". These partial payments will not reduce your principal balance. You should only make partial payments if you have made prior arrangements for a "mortgage loan work-out program", and make absolute certain that you have all of the details about these payment arrangements in writing.  

Suggestion # 4) Don't believe the promises of "Foreclosure Counselors" or "Loss Mitigation Specialists" that claim to be "looking-out for your best interest". Their job is to gather information from you that will expedite the foreclosure process for their employer. Always make sure that all promises made to you from these counselors/specialists are given to you in writing.

Suggestion # 5) Don't fall victim to the various consumer scams that promise to "settle your mortgage debt for pennies on the dollar", But, require that you pay an up front fee (often in the thousands of dollars) to "represent you" in negotiating with the lender. These scams often prove useless, and can even result in you losing your home faster than the standard foreclosure process. Legitimate REALTORS who know the foreclosure process are compensated by a sales commission, paid only at closing, from the proceeds of sale, and paid from the lender. There should never be an "up-front fee" (charged to you) to conduct a "Loan Work-Out" or "Pre-Foreclosure Short-Sale".

Suggestion # 6) Don't attempt to qualify for a "Mortgage Loan Workout Program" if you no longer wish to live in your home. Or, if your home is going to cause additional/increasing financial burdens for you in the years to come.

Suggestion # 7) Don't attempt to sell your home "For Sale by Owner" (FSBO) in the belief that you can get more money from the sale of your home by avoiding the payment of a real estate commission.  Most mortgage lenders will require that you provide proof that your home be listed in the local Multiple Listing Service (MLS) of your local Board of REALTORS in order to consider it for a "Pre-Foreclosure Short-Sale". The Mortgage lender will pay for the Realtors commission if it is sold as a Short Sale.

Suggestion # 8) Don't become "greedy" when you do attempt to sell your home under a "Pre-Foreclosure Short-Sale".  Very few sellers ever receive any money at closing when conducting a "short-sale" (after all back fees and expenses are deducted). Your main objective is to sell the home at the highest price that the market will allow. A competent REALTOR will provide you with comparable "Sold/Listed" properties in your neighborhood, and will help you to determine your home's "fair-market value range". This is the price range in which your home should sell under normal market conditions. It is the most money you will receive for the home.

Suggestion # 9) Don't accept  the "Low-Ball" Offers to that you receive on your home, "just to get the sale over with".  Only accept an offer that can be justified from using recent "Sold/Listed" Comparable properties. Your mortgage lender (and any other lien holders on the property) will always have the final say as to whether or not they will accept the "short-sale" offer- and they will always require that an appraisal be done on the home to justify the price offered. If the offer meets their expectations, they will accept it as written.

Suggestion # 10) DON'T panic!!! This is the most important point of all!!  As mentioned, the foreclosure process can take up to 6 months, and even longer in many cases. If you remain calm, and take the necessary steps as early in the process as possible, you and your mortgage lender may very well find an acceptable common solution to your mortgage delinquency/foreclosure problem.

Things to Do:

Suggestion #11) DO hire/retain competent legal counsel! The foreclosure process is a very complicated and difficult one. It is imperative that you retain the help of a real-estate attorney who is familiar with foreclosures, and the methods of delaying them. You should consult with an attorney as soon as you receive the first notice of delinquency from your mortgage lender.

Suggestion #12) DO seek the help and advice of a competent REALTOR who is familiar with "Mortgage Loan Work-Out Program" alternatives and the "Pre-Foreclosure Short-Sale" process. They will be more than happy to assist you by providing you with the information/advice necessary to make the right decision for your particular situation.

Suggestion #13) DO take advantage of federally-funded homeowner assistance programs provided through H.U.D. (U.S. Dept of Housing and Urban Development) that can explain your alternatives to foreclosure, and direct you to programs designed to help the financially troubled homeowner avoid foreclosure.

Suggestion #14) DO contact your mortgage lender immediately when you first face economic difficulties that prevent you from making your monthly mortgage payments. During periods of short-term unemployment or other financial difficulty, most lenders will be willing to work with you---As long as you can get back on track within a period of one year or less.

Suggestion #15) DO maintain complete and accurate records of all correspondence (mail, phone calls, legal notices, etc) received from your mortgage lender in regards to your loan delinquency and the foreclosure proceedings being conducted against you. It is important that these records are maintained so that your attorney can provide you with a legal defense against the foreclosure process, and delay the sale of your property as long as possible.

Suggestion #16) DO apply for any "Mortgage Loan Work-Out Programs" (if available, and they are right for you) from your lender. These programs are designed to prevent mortgage foreclosures by giving homeowners facing short-term economic difficulties a period of time (up to one year) to make reduced payments on their property, sometimes at a reduced interest rate.

Suggestion # 17) DO consider conducting a "Pre-Foreclosure, Short Sale" on your property. A "Short-Sale" is any sale in which the Net Proceeds of Sale (Sales Price minus Expenses of Sale, Back Property Taxes and Legal/Other Fees) is less than the amount you owe to satisfy your mortgage. Most lenders are willing to (and some are even required to) give you the opportunity to sell your home at "Fair Market Value" for a period of up to six months.

Suggestion #18) DO continue to complete routine maintenance and minor repairs to your home. In the event that pursuing a "Pre-Foreclosure Short-Sale" becomes the best alternative for your particular situation, it will still be imperative for your house to sell for the highest possible dollar in the shortest amount of time. Make sure your home is attractive to the potential buyer. The better your home shows, the higher the sales price you will receive.

Suggestion # 19) DO maintain Casualty/Fire/Theft Homeowners Insurance on your property. If you are responsible for paying your own homeowners insurance (outside of escrow) and you allow the policy to lapse (expire) you may be held financially responsible for any fire, theft or other damage that occurs to the property- Contact your insurance agent or Attorney for more information and further advice.

Suggestion #20) DO continue to pay your city/county property taxes (if possible, and you are not already behind on them). If you are responsible for paying your own property taxes (outside of escrow) and you fail to do so, your taxes may be sold at the County "tax-sale". Many States have laws allow the purchasers of your property taxes to charge you up to 2% interest per month (An annual percentage rate of 24%). All back property taxes must be paid at closing.

Suggestion #21) DO contact Michele Vaughn AS SOON AS POSSIBLE. The sooner the better she will be able to help you. Contact Michele today to schedule a discrete and confidential appointment. We’ll explain how we can help you, and determine if your situation could qualify for Loan Modification or the Short-Sale process.

Michele Vaughn, REALTOR,  "The South Orange County Pre-Foreclosure Specialist"

 Do Not Lose Your Home to Foreclosure! Call me for the help you need

(949) 295-7171 Direct line

Streamlining Stratgies to Simpify the REO Process 

Our Team Members

Michele Vaughn - Owner Operator & REO Business Manager

With over 10 years of REO Asset Listing and Sale experience, I am responsible for developing and improving Asset Manager relationships by increasing productivity and efficiency and managing all aspects of the team's REO business. A few of my curent and loyal REO clients include Bank of America, American Home Mortgage Servicing, Indymac Bank, Citibank, Bank of China, Wells Fargo, RES.net, First American, Old Republic and others. I am also experienced in REOTrans, RES.net, Dares and many other asset management programs.  

Christy Campbell, REO Marketing Manager - Christy has 12 years as a licensed Realtor. She is responsible for executing the marketing plan for each individual REO property to ensure a prompt sale at the highest and best possible price.

Martha Wagner, REO Accounting Manager - Martha is a licensed Real Estate Broker and an Accountant with many years experience in all aspects  of the real estate investment business. Martha's extensive accounting background and current role as consulting REO listing Agents makes her a vital part of my team.

Vickie Steele, REO Transaction Coordinator - Vickie is a licensed Realtor with over 9 years of experience in California Real Estate sales.  Vickie's role on our team is to manage the sale process once the asset is under contract.  This includes managing all of the paperwork necessary to meet the contract agreements and managing the contingency removal timeframes. Vickie makes sure all necessary items are completed according to the contractual time frames to ensure on-time closings and smooth transactions.   

Gale Lacoco, Escrow Manager - Gale brings her experience of over 13 years as an Escrow Officer, Office Manager and Property Manager to our team.  Gale tracks the day-to-day status of each REO asset once the property enters into escrow.  Gale is responsible for daily communications between the Escrow Officer, Agents and other parties to the transaction.

Brenden Moyers, Offsite Property Manager - Brenden is the eyes and ears of the team. He is responsible for monitoring the REO properties on site. He covers occupancy checks, re-keying, security monitoring, and property preservation. Brenden visits each property every three days to ensure the condition stays up to par. Brenden is also responsible for managing contractors and repairs.

 A Few of the Services We Provide Enclude:      Drive-by Reports,  Exterior BPO,  Full BPO,  Occupancy Check, Eviction,  Cash fo Keys Service,  Monthly Reports,  Marketing,  Property Preservation,  Re-Keying,  Lawn Maintenance,  Home Repairs,  General Repairs,  Trashouts,  Utility Management,  Dedicated Home Managers    

Zip Codes We Service:

 92656, 92624, 92625, 90630, 92629, 92610, 92603, 92606, 92614, 92612, 92710, 92620, 92697, 92602, 92604, 92618, 92709, 92694, 92651, 92652, 92677, 92653, 92630, 92691, 92692, 92661, 92660, 92662, 92663, 92657, 92688, 92673, 92672, 92675, 90740, 92676, 90742, 90743, 92679, 92780, 92782