THE FATHER LIFE | the men's magazine for today's fathers

Learn Your Options – Take Responsibility

By: Andy Falk, MBA, Realtor
Image By: Svilen Milev
May 26, 2008

When a property goes into default, that property finds itself on a variety of radars. Different stakeholders with different agendas begin pursuing the property owners, and most of them are doing so for their own gain. Homeowners need to look at ALL their options before setting their own plan into action, otherwise their ownership may come to a less than favorable conclusion. Every situation is different: every bank, every loan--and every day things change. Get up to speed on your situation today. You need to decide what is best for you.

1. Approach the bank at the deepest level, preferably beyond customer service and into 'loss mitigation.' Find out what the bank is going to do and how long you have. What can they do for your? Modify your loan, grant a forbearance, or offer a way to become current or otherwise keep your home? Getting to decision makers takes time and persistence; do not be dissuaded by the first, second, or third 'no' you hear. The best time to call loss mitigation is when they first open early in the week: Monday or Tuesday, no later than 9 AM EDT.

2. Get legal advice. What happens in the event of foreclosure and what happens if you decide to do a short sell? Is bankruptcy an option, when should you do it if you are going to do it, how much will it cost, how long will it take, and what do you need to do?

3. Get financial advice. There are tax consequences that must be considered. Banks are losing unprecedented amounts of money: how much will they lose in your case compared with how much you make per year? This may be the most important financial event in your life so it's worth it to spend a little money to look into the consequences before you act.

4. Talk to a qualified Realtor, possibly interviewing several. There are some good Realtors in your market who know exactly what they need to do to effectively execute a short sale transaction. Before signing any listing in the event of a short sale, the Realtor will give you a short sale listing addendum that advises you to get legal and financial advice. Keep in mind that Realtors are bound by a code of ethics, and real estate agents are not.

Extra Credit: Talk to a non-profit organization about where to go for legal and financial advice if necessary.

Only when you have talked to the bank, lawyer, CPA, and Realtor(s) about your particular situation will you truly have the information you need to come up with your best option.

Andy Falk is a father of two incredible daughters born in 2001 & 2003, Skylee and Sabrina. Andy has been happily married for 13 years, and is an avid pre-dawn cyclist. He is a successful Realtor in Marin County, CA, publishes the website www.tiburonrealestaterag.com, and has an MBA from San Francisco State University with an Internet Marketing concentration.


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Learn Your Options – Take Responsibility By: Andy Falk, MBA, Realtor Image By: Svilen Milev May 26, 2008 When a property goes into default, that property finds itself on a variety of radars. Different stakeholders with different agendas begin pursuing the property owners, and most of them are doing so for their own gain. Homeowners need to look at ALL their options before setting their own plan into action, otherwise their ownership may come to a less than favorable conclusion. Every situation is different: every bank, every loan--and every day things change. Get up to speed on your situation today. You need to decide what is best for you. 1. Approach the bank at the deepest level, preferably beyond customer service and into 'loss mitigation.' Find out what the bank is going to do and how long you have. What can they do for your? Modify your loan, grant a forbearance, or offer a way to become current or otherwise keep your home? Getting to decision makers takes time and persistence; do not be dissuaded by the first, second, or third 'no' you hear. The best time to call loss mitigation is when they first open early in the week: Monday or Tuesday, no later than 9 AM EDT. 2. Get legal advice. What happens in the event of foreclosure and what happens if you decide to do a short sell? Is bankruptcy an option, when should you do it if you are going to do it, how much will it cost, how long will it take, and what do you need to do? 3. Get financial advice. There are tax consequences that must be considered. Banks are losing unprecedented amounts of money: how much will they lose in your case compared with how much you make per year? This may be the most important financial event in your life so it's worth it to spend a little money to look into the consequences before you act. 4. Talk to a qualified Realtor, possibly interviewing several. There are some good Realtors in your market who know exactly what they need to do to effectively execute a short sale transaction. Before signing any listing in the event of a short sale, the Realtor will give you a short sale listing addendum that advises you to get legal and financial advice. Keep in mind that Realtors are bound by a code of ethics, and real estate agents are not. Extra Credit: Talk to a non-profit organization about where to go for legal and financial advice if necessary. Only when you have talked to the bank, lawyer, CPA, and Realtor(s) about your particular situation will you truly have the information you need to come up with your best option. Andy Falk is a father of two incredible daughters born in 2001 & 2003, Skylee and Sabrina. Andy has been happily married for 13 years, and is an avid pre-dawn cyclist. He is a successful Realtor in Marin County, CA, publishes the website www.tiburonrealestaterag.com, and has an MBA from San Francisco State University with an Internet Marketing concentration.