Here is the dramatic story of a struggling Chatsworth family. The family won't lose home due to the help of I Short Sale, Inc.http://www.dailynews.com/news/ci_14772426

Federally mandated shortsale rules as of April 5, 1010.

Here are some of the new Federally Mandated short sale key rules:

• Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
• The seller will be released from all liability for repayment of the mortgage debt.
• Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
• The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
• The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
• The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.
• The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.

Here is the link to the FED program

Facing foreclosures? A short sale may be a better option

Click here to listen or download (short sales.mp3, 14.89 MB)


• Why more distressed homeowners are taking the short route
• ‘Reduction of principal used to be taboo’

Millions of Americans, especially in California and a few other states, are living underwater – in homes whose market value is less than their mortgages.

For those unable to make the payments, foreclosure is often the result, since government “help” programs have often been seen as too little, too late and applicable to too few.

But Southern California real estate investor Eli Tene says there is a better way for many: the short sale.

“Reduction of principal used to be taboo. Finally, they are getting to it,” says Mr. Tene, managing president of IShort Sale Inc., which describes itself as one of the largest short sale firms in the U.S.

“They are still putting some limitations. It only works for people who didn’t missed payments,” says Mr. Tene, who notes that as many as 10-12 million homeowners face a serious risk of foreclosure over the next three years.

But he says lenders are waking up to the fact that getting something in a short sale is better than getting stuck with owning the homes they have foreclosed on.

(Eli Tene talks about when the short sale may be the right sale in today’s CVBT Audio Interview via Skype. Please left-click on the link below to listen now or right-click to download the Mp3 audio file for later listening.)

Mr. Tene has some advice for those faced with mortgage problems.
• Communicate with your lender from the moment you are having difficulties making the mortgage payments. Many times, continuous communication with the lender prolongs the time frame from the beginning of the default to the initiation of the foreclosure proceedings.


• When communicating with lenders and when being asked over the phone to provide financial information, never furnish such data without organizing it on a piece of paper and studying it. People tend to provide wrong or un-audited financial information over the phone, which is being recorded by the lender. Changing these figures later might be difficult.


• Substantiate an income. The most important key factor of obtaining a modification is to substantiate an income. A lender will not grant a workout to anyone who is not able to show hard proof of income. Make sure your records are straight, especially if you are self-employed. Go thoroughly over your income and expenses. Cut all unnecessary expenses and trim existing ones. Lenders like to see the borrowers living on a tight budget before they are being asked to cut their mortgage charges. Make minimum payments to credit cards. ?


• Know the programs available on your loan. Obtaining a loan modification is somehow considered as a "mini loan." As such, you have to know the programs available on your loan, know the exact numbers and ratios the lender is looking for (in most cases the lender will not provide it to you), and understand the lender's language. If you don't feel secure communicating with the lender and obtaining the modification, consult a professional.??

Short Sale Myths De-Bunked

With short sales making up almost 35% of home sales in March and the country in a national foreclosure crisis, I Short Sale, Inc., one of the largest short sale firms in the U.S. sets the record straight on common short sale myths.

Short Sale Myths

1. You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. We have completed many short sales in instances when the borrower was not in a default situation.

2. Listing my home as a short sale is embarrassing. Anytime we get ourselves into a tough financial situation it can cause some embarrassing feelings. It is important to remember that those feelings will not help us get back onto stable financial ground. We need to overcome our feelings and do what is right to protect our financial futures.

3. Buyers aren't interested in short sale properties. Short Sale properties are often times available at a competitive price to other properties on the market. In many cases, short sale properties are very well cared for and have not had to endure the deferred maintenance of a REO property. Short Sale properties are in great demand in the marketplace.

4. There's not enough time to negotiate a short sale before foreclosure. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try.

5. The bank would rather foreclose than complete a short sale. Banks do not want to foreclose on property. It is expensive and carries a high level of liability once the bank owns that property as an REO. Wherever possible, banks are seeking other loss mitigation options before foreclosure.

6. Short sales are impossible and never get approved. Short sales are complicated, but not impossible. We negotiate short sale approvals every day.

About I Short Sale, Inc.

I Short Sale, Inc. is a leading nationwide short sale and loss mitigation advisory firm that has assisted thousands of property owners and lenders in the intricate business of short sales, loan modifications, forbearances, deeds in lieu and other loss mitigation solutions. Since 1991, I Short Sale's principals have helped property owners and lenders avoid the lengthy and costly process of foreclosure and the stressful act of eviction. With over 18 years of experience, I Short Sale principals have developed a far-reaching network of contacts consisting of property owners, mortgage companies, banks and realtors. The firm's success is based on integrity and delivering on their client needs. Compliance with all State and Federal laws is our mandate. Learn more at http://ishortsale.com.

Eli Tene just spoke about short sales on Fox Business News

Steps to Avoid Foreclosure

The following options may be available to borrowers who are unable to afford their mortgage payments and who wish to avoid foreclosure: If your problem is temporary, you may want to consider the following options:
Reinstatement - Your lender may be willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
Forbearance - Your lender may be able to temporarily reduce or suspend your payments for a fixed period of time. At the end of that time, you must make a lump sum payment or enter into a long term repayment plan to pay back the reduced or suspended amount. Forbearance may be a good option when the cause of your default is specific and temporary and it is reasonable to assume you will be able to resume making payments at the end of the forbearance period.
Repayment Plan - Your lender may be able to arrange a simple repayment plan whereby you make your mortgage payment plus an amount of the total in default. The plan could be a few months long, or may extend to a year. At the end of the time period, you would have paid off the past due amount and your payments go back to the original payment amount. Your lender or servicer may require a good faith payment upfront to begin the plan.
If your problem appears to be long-term or will permanently affect your ability to bring your account current, you may want to consider the following options:
Mortgage Modification – If you can make payments on your loan, but don’t have enough money to bring your account current or you can’t afford your current payment, your lender (We) may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:
Adding the missed payments to the existing loan balance
Changing the interest rate, including making an adjustable rate into a fixed rate.
Extending the number of years you have to repay.
Partial Claim – If your mortgage is insured and you qualify, your lender may be able to help you get a one-time, interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan.
If keeping your home is not an option, you may want to consider the following options:
Sale - If you can no longer afford your home, your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You may be expected to use the services of a real estate professional who can aggressively market the property.
Pre-Foreclosure Sale or Short Sale - If you can't sell the property for the full amount of the loan and you qualify, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs.
Assumption - A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.
Deed-in-lieu of foreclosure - As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but may help your chances of getting another mortgage loan in the future.
Regardless of which option you choose, it is important to note that for the majority of these alternatives to begin, you will need to collect the following documents in order to work with a HUD-certified counseling agency.
2 Most recent pay stubs
2 most recent bank statements
2 most recent IRS Tax Returns (W2’s & 1040’s)
Financial Statements
Recent mortgage statement (mortgage payment notice/coupons) of each loan.
A “Hardship Letter” describing in your own words the reasons you are unable to pay your mortgage.

Source: www.reosas.com

I Short Sale, Inc.

What is a Hardship?

A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are:
Separation or Divorce
Medical Bills
Inability to work due to health reasons
Death of Spouse
Job Relocation
Reduced Income or Unemployment
Business Failure