Avoid Foreclosure & Short Sales information

Pelletier Realty Group Helps Sellers with Short SalesAvoiding foreclosure; hard times can hit us all making it difficult to continue owning a home.

Drop in for a chat, have a cup of coffee, and review your mortgage issues and find solutions - help may be only a cup of coffee away!

We have several solutions to assist you:

  • Learn about loan modifying and resetting your rate.

  • Refinancing and available funds.

  • Preserving your credit through short sales.

  • Review resource lists and programs.

Reset your rate- numerous agencies can help you work out a plan with your lender to help lower your current rate. See the list below for agencies who can help you.

AHEAD Inc.
Lori Wigget
161 Main Street Littleton, NH 03561
Tel: (603) 444-1377
Email: loriw@aheadnh.org
www.homesahead.com

 

CATCH Neighborhood Housing
George Helwig
79 South State Street, Concord, NH 03301-3521
Tel: (603) 225-8835
Email: ghelwig@catchhousing.org

 

Consumer Credit Counseling Services of New Hampshire and Vermont
Linda Purdy
P.O. Box 818, Concord, NH 03302
Tel: (603) 224-6593
Email:ljp@cccs.mv.com
GreenPath-Consumer Credit Counseling

 

NeighborWorks of Greater Manchester
20 Merrimack Street
Manchester, NH 03101
Tel: (603) 626-4663
www.nwgm.org

The Housing Partnership
Terry Spires
1555 Islington Street, Portsmouth, NH 03801
Tel: (603) 766-3120
Email: terry@housingpartnership.org
www.housingpartnership.org

 

Neighborhood Housing Services of Greater Nashua
Mary Febonio
63 Temple Street, Nashua, NH 03060
Tel: (603) 882-2077
Email: Mary@nhsgn.org

 

New Hampshire Housing
Andrew Cadorette
32 Constitution Drive
Bedford, NH 03110
Tel: (603) 310-9287
Email: acadorette@nhhfa.org

 

New Hampshire Legal Assistance (Foreclosure assistance only)
Christine LaVallee
1361 Elm Street, Suite 307
Manchester, NH 03101-1323
Tel: 206-2221
Email: clavallee@nhla.org

 

Granite State Independent Living
21 Chenell Drive
Concord, NH 03301
Phone: 603-224-1130
www.gsil.org

US Department of Housing and Urban Development
Norris Cotton Federal Building
275 Chestnut Street, 4th Floor
Manchester, NH 03101-2487
Phone:603-666-7510
www.hud.gov

Federal Housing Administration
1000 Elm Street, 8th Floor
Manchester, NH 03101-1730
Phone:603-666-7510
www.fha.gov

US Department of Agriculture and Rural Development
10 Ferry Street, suite 218
Concord center, Box 317
Concord, NH 03301
Phone: 603-223-6035
www.rurdev.usda.gov

NH Banking Department
64 B Old Suncook Road
Concord, NH 03301-1323
Phone: 603-271-3561
1-800-437-5991
www.nh.gov/banking

NH Bankers Association
15 North Main Street, suite 204
PO Box 2586
Concord, NH 03302-2586
Phone:603-224-5373
www.nhbankers.com

Refinance your mortgage through the Hope Program 1-888-995-HOPE

HOME OWNERSHIP PRESERVATION - Is designed to help home owners stay in their homes and assist in refinancing your loan. This is a Non-Profit organization run by federal and state grant money.

Sell your property regardless of what you owe with a short sale.  Review the information below to learn the details of selling when the amount owed is more than market value.

Selling Your Home as a Short Sale:

When circumstances lead you to a decision that selling your property is the best for you but your loan amount exceeds the current market value a short sale is an alternative to foreclosure. If you can no longer afford to make monthly mortgage payments the short sale is a process in which your mortgage company may agree to accept less that the amount that you owe on the property. Depending on the lenders finances it may make more sense to agree to a discounted payoff in order to transfer the property to a new Owner.

Starting to communicate with your lender is a good start especially if you have recently been unable to make payments.

Lenders may vary their requirements and even request the property to be on the market at a price that would not incur a short sale for a certain time frame but most will want the following from you:

Upon Application:

Authorization and Release Form - because your information is confidential the lender will not disclose your information to another party if you are working with a Realtor, Attorney or title company without written permission from you.

  1. Listing contract.
  2. MLS Listing sheet.
  3. Two years most recent tax returns-Lenders will want to know what assets you have such as, savings accounts, money markets, stocks or bonds or any other valuable assets that would show that you have the ability to pay the difference between what you owe and what the market will bear.
  4. Two months most recent paystubs-proof of income as well as any change in employment.
  5. Two months most recent bank statements-you should explain any large deposits or withdrawals.
  6. Hardship letter- you must describe to the lender what circumstances have lead to your inability to pay. Your statements should be factual such as job loss, medical problems, divorce or any hardship that has contributed to your economic problem.
  7. Comparable Sold properties, you must submit at least three recent sales that are similar to your property that support that the loan amount exceeds the market value due to declining values and market conditions.
  8. Financial worksheet, often the lender will require their financial form filled out and submitted to them. 

Upon Receipt of an Offer:

  1.  Copy of Purchase and Sales subject to their approval
  2. Completed HUD-1 settlement statement prepared by an attorney or title company. This form itemizes the costs of the sale that are specific to NH and show any and all unpaid loan balances and any other closing costs that the Seller is required to pay. Be sure to know if there are liens that have been recorded or outstanding property taxes.
  3. Preliminary Title Report. Title companies will often run a preliminary title search to see if there are any unknown liens that need to be paid at the time of closing.
  4. Preapproval letter of Buyer. Your lender will want to know that the Buyer is able to follow through on their end and be able to obtain financing or if this is a cash sale that the Buyer can verify sufficient funds necessary to close.
  5. Second or Third mortgages need to be contacted. If there has been an equity or second mortgage obtained these companies also need to be contacted with the process repeated similar to the first and an agreeable payoff to them must also be determined in coordination with the 1st mortgage.
  6. Once all information has been submitted to the litigation department a Negotiator will be assigned to review the paperwork. The Negotiator may order a Broker Price Opinion or an Appraisal to determine the current value. The Short sale process from the time that a contract is submitted may take anywhere from 30 to 90 days. Make sure the contract gives the negotiator enough time to process the short sale for the full 90 day timeframe. In the event the short sale is approved the terms of the approval will be provided in writing and a closing date will be stated. As long as there are no additional costs and the property can close on or before the lenders stated closing date you should be able to avoid the foreclosure although you will net zero from the sale.

Click here for further information regarding short sales