When the Mortgage becomes a problem

Contact the loan servicer and find out exactly where the loan stands. Ask how much is due, whether any notices have been recorded and what options may be available.

At the same time, it can be helpful to determine the current value of the home and the estimated equity. That does not mean you have decided to sell. It gives you information you may need when comparing the available options.

Do not ignore mail, calls or notices because you are unsure what to say. The more time that passes, the fewer choices you may have.

 Yes. Being behind on payments does not prevent the property from being listed and sold.

The important questions are how much is owed, whether other liens exist, what the home is worth and how far the foreclosure process has gone. If the expected proceeds are enough to pay the required amounts, the home may be sold as a traditional transaction.

If the expected proceeds are not enough, a short sale or another lender-approved solution may be necessary.

 We start by estimating the home’s current market value. Then we compare that amount with the mortgages, recorded liens, unpaid taxes, HOA balances, selling expenses and any other amounts that may need to be paid through escrow.

The result is an estimated proceeds worksheet showing what the transaction may look like. The final amounts will come from the lenders, title and escrow, but the initial review helps determine whether a traditional sale appears realistic.

 Possibly. A Notice of Default means the foreclosure process has formally moved forward, so timing matters.

We need to review the property value, estimated payoffs, condition and likely sale timeline as soon as possible. The homeowner should also contact the servicer and a qualified California attorney to understand the current foreclosure dates and legal options.

A home sale may still be possible, but no one should assume there is plenty of time without reviewing the actual notices and scheduled dates.

Contact the loan servicer promptly so you know the current loan status and what retention options may be available. You can also contact Chris or Andrea to review the property value and possible sale options.

These conversations serve different purposes. The servicer controls the loan and any repayment, forbearance or modification program. We handle the real estate side and can help determine whether selling the home may be a realistic option.

 When the expected sale proceeds will not cover the mortgages and required selling expenses, the homeowner may need to bring money to closing or request approval for a short sale.

A short sale requires the lender and any other lienholders to approve less than the full amount owed. 

Before moving forward, the homeowner should also obtain legal and tax advice because lender approval of the sale does not automatically answer every question about the remaining debt or possible tax consequences.

A short sale is a real estate sale in which the proceeds are not enough to pay all amounts owed against the property and one or more lienholders agree to accept the transaction.

The property is listed, marketed and placed under contract, but the sale remains subject to lender approval. The lender may order its own valuation and request detailed financial and hardship documents from the seller.

Chris and Andrea handle the listing, buyer offer and real estate submission while coordinating with the seller, lender representatives, title, escrow and the seller’s legal or tax professionals.

Yes. In many short sales, the property is listed first so an actual buyer offer can be submitted to the lender with the required short-sale documents.

The lender may have its own process, forms and investor requirements. Some loan programs or assistance programs may also require additional documents or approvals.

The property still needs to be priced based on the current market. Listing at an unrealistic price can delay the process or result in the lender rejecting the offer

There is no single timeline. It depends on the lender, investor, number of loans or liens, required documents, valuation process, buyer financing and how quickly everyone responds.

A complete package and a realistic offer can help, but the lender controls the approval process. Some short sales move steadily while others require repeated reviews or updated documents.

We keep the parties informed and continue following up, but we do not promise an approval date the lender has not provided.

 Yes. Many financially distressed properties are sold in their current condition.

We review whether the property is likely to attract an owner-occupant, investor or cash buyer and whether the condition may create financing or insurance problems. The home can often be marketed through the MLS so more than one buyer has an opportunity to consider it.

Selling as is does not eliminate the seller’s disclosure obligations, and the buyer may still inspect the property.

We can help coordinate property access, cleaning, junk removal, donations, estate clean-out, yard service and other vendors when needed.

The property does not always need to be completely empty before we evaluate it. We first look at the condition and discuss whether the home should be cleared, partially cleared or marketed as is.

In qualifying transactions, certain approved expenses may be paid through escrow from the seller’s proceeds instead of being paid entirely upfront.

Mortgages are not the only amounts that may need to be addressed in a sale. The property may also have HOA liens, tax liens, judgments, solar obligations, child-support liens, code-enforcement charges or other recorded claims.

Title and escrow can help identify recorded liens and request payoff information. Whether the sale can close depends on the total amounts owed and whether any lienholder must approve a reduced payoff.

Legal disputes about the validity or priority of a lien should be handled by an attorney.

The first step is to determine who has authority to act for the estate or trust and obtain information about the loan and property.

An executor, administrator or trustee may need to address missed payments, insurance, property condition, occupants and the sale timeline. We can evaluate the home and explain the real estate options while the attorney confirms the legal authority.

Do not assume the mortgage problem will resolve itself because the borrower died. Notices and deadlines should be addressed promptly.

Yes. We can handle the property valuation and real estate sale while the parties and their attorneys address legal authority, ownership, occupancy and the division of proceeds.

A divorce related sale can become more difficult when payments are already behind, because the transaction may involve both a foreclosure timeline and disagreement between the owners. Clear written communication and early property information are important.

No. REMAX Empire Properties is not a loan modification company and does not negotiate loan retention programs.

Your lender or loan servicer controls any repayment plan, forbearance or modification. A HUD-approved housing counselor may also help homeowners understand available mortgage options. HUD states that foreclosure-prevention counseling through approved agencies is available without a fee.

 We can help with the property value, estimated equity and the real estate side of a traditional or short sale. 

No. Listing the home does not automatically stop or postpone a foreclosure sale.

The lender or trustee controls the foreclosure process unless there is a written postponement, payoff, approved short sale or other legally effective action. If a foreclosure sale has been scheduled, the homeowner should confirm the status directly with the servicer or trustee and obtain legal advice.

We can communicate about an active sale with proper authorization, but we cannot promise the lender will delay foreclosure.

Waiting can reduce the number of available options. A property may need time for cleaning, repairs, marketing, buyer inspections, appraisal, financing, title work and escrow.

A traditional sale can often move faster than a short sale, but neither can be guaranteed to close before a scheduled foreclosure without enough time and cooperation from all parties.

Even if you are not ready to sell, learning the value and estimated equity early gives you information you can use before the situation becomes more urgent.

Be cautious of anyone promising a guaranteed result, demanding an upfront payment, telling you to stop communicating with your lender or asking you to transfer title.

Do not sign documents you do not understand. Keep copies of all notices, emails, texts and payments. Homeowners can obtain information from California Courts and locate HUD-approved housing counseling through official government resources

Speak with the appropriate professional when the situation involves an active foreclosure, bankruptcy, divorce, probate, disputed ownership, judgments, tax liens, possible debt after a short sale or questions about tax consequences.

Chris and Andrea can explain the real estate transaction, value and sale process. They do not provide legal, tax or financial advice.

Distressed sales require experience with more than ordinary listing and marketing.

Chris began working in real estate in 2001, and Andrea began in 2003. They worked through the foreclosure crisis and have since handled short sales, REO and bank-owned properties, HUD homes, lender-related transactions, inherited properties and other sales involving complicated title, condition, occupancy and timing issues.

The Murray Team has completed more than 4,000 home sales. REMAX Empire Properties has experience with institutional sellers and servicers including US Bank, Shellpoint and Radian and has served in HUD-related listing roles.

That background allows Chris and Andrea to look at the entire real estate problem: value, equity, liens, timing, condition, buyer financing, lender approval and the practical steps required to get the property sold.