Short Sales Not Extinct Yet

Short Sales Not Extinct Yet

Short Sales Not Extinct Yet

Short Sales Not Extinct Yet

Unlike the dinosaur, Short sales are not extinct yet. However, the number of short sales has reduced dramatically as many Arizona and California homeowners have recovered much of their equity. Today, there are still Arizona and California homeowners that think that short sales have gone away but, short sales are not extinct yet.

Why have they come back or increased? We are coming into a milestone period in many borrowers amortization charts. Those charts that dictate the amount of payments on the home at particular times of the mortgage. There were many homeowners that chose exotic adjustable rate mortgages, interest only mortgages or balloons. The idea was that in 10 years, if the income had not gone up when the payment on the mortgage was going up, they could always sell the home and take the equity.

Well, those same borrowers, who purchased homes in 2004 to 2007 are now getting or have already received letters from their lender that their payment is going up…HUGE!. They cannot afford it. Many of those homeowners have reached out to those lenders to refinance just to find out that even though their market value has recovered quite a bit from the bottom, they still do not meet the Loan To Value requirements of todays lending guidelines. There will be no refinance for them.

The next step may be to look at a loan modification. However, how are you going to show a hardship? You are current on the payment, your income may actually support the higher payment, but life in 2015 America is just way more expensive than it was 10 years ago. What if you need to look to Short Sale? The rules have changed and there are concerns over deficiency liability.

We can help 

The Mortgage Mediation Group, here at McCarthy Law PLC, is here to help your friends and clients that are facing tough decisions on their mortgage. If you or someone you know is facing a point today or in the future where they must make a decision related to their mortgage and do not have sufficient equity in the home to sell or refinance, they need to speak with someone that can answers the tough questions on liability, foreclosure, rights, deficiency risk etc.  Call 888-909-1030 or click here to schedule a consult. 

We are here to help. 

We have been assisting homeowners since 2008 with their mortgage law questions. Our initial consultation is at no cost to the homeowner. We will discuss their issues, answer their questions and help them understand their options.


After we have helped you make a decision, you may need assistance. If you choose Deed in Lieu, Short Sale, Loan Modification or Strategic Default, you can retain us to guide you through the legal hurdles of those decisions. The flat fee for this engagement is $1,500. It is a flat fee and no further fees will be due. 

What if you choose short sale and desire the Mortgage Mediation Group to process and negotiate the short sale?

If you, the client,  chooses us to, in addition to the initial retainer, process and negotiate with the lender for the short sale, then we will have a 1% or $2,000 which ever is greater contingency fee. This will come out of the commission stack at closing.

We have enjoyed serving Arizona and California over the last 8 years and look forward to serving Arizona and California homeowners for the years to come in all of their mortgage law needs.

The Mortgage Mediation Group, here at McCarthy Law PLC, is here to help your friends and clients that are facing tough decisions on their mortgage. If you or someone you know is facing a point today or in the future where they must make a decision related to their mortgage and do not have sufficient equity in the home to sell or refinance, they need to speak with someone that can answers the tough questions on liability, foreclosure, rights, deficiency risk etc.  Call 888-909-1030 or click here to schedule a consult. 

About Kevin Hardin

Kevin W. Hardin is a 22 year veteran of the Mortgage and Real Estate industries. He holds a Juris Doctor (JD) degree from Concord Law School and a CMB (Certified Mortgage Banker) from the Mortgage Bankers Association. He is a Senior Loan Officer at HomeStreet Bank. He works with Borrowers, Attorneys, Title Companies, Real Estate Agents and Mortgage Companies on mortgage law issues.

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