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FAQ'S
 Why let Coast to Coast Short Sales handle your
loss mitigation needs?
Our staff has over 25 years in experience working in the Loss
Mitigation Departments of lenders and banks. We know what the lender
needs to get a short sale approved.
What is a Deed in Lieu?
A Deed in Lieu is when the property is deeded back to the lender
with the approval of the borrower prior to foreclosure. (This
process may still leave a negative impact on the borrower's credit.)
Why should a lien holder accept less than the
outstanding debt?
After the lender does an appraisal on the property and discovers
that the value is less than the payoff, the lender will decide if it
is worth further legal actions and cost. A business decision is made
to either continue foreclosure action or accept the short sale
offer.
What is a Closing Statement?
A form used at closing that gives an account of the funds received
and paid at closing, including the escrow deposits for taxes, hazard
insurance, and mortgage insurance.
What is a Deed?
The legal document conveying title to a real property.
What is a Deed of Trust?
A deed of trust is an instrument used in many states in place of a
mortgage. Property is transferred to a trustee by the borrower (trustor),
in favor of the lender (beneficiary) and reconveyed upon payment in
full.
What is Depreciation?
A loss of value in a real property brought about by age, physical
deterioration, functional or economic obsolescence.
What is a Mortgage?
A mortgage is a lien on the property that secures the promise to
repay a loan.
What is Loss Mitigation?
Loss Mitigation is a process to avoid foreclosure; the lender tries
to help a borrower who has been unable to make loan payments and is
in danger of defaulting on his or her loan.
What is a Loan Modification?
A mortgage
modification is a loss mitigation option that allows a borrower to
refinance and/or extend the term of the mortgage loan and reduce the
monthly payments.
What is a Forbearance Plan?
A forbearance plan is a loss mitigation option where the lender
arranges a revised repayment plan for the borrower that may include
a temporary reduction or suspension of monthly loan payments.
What is a Short Sale?
A short sale is a negotiated settlement. This is when the lender
agrees to accept less than the amount owed as a payoff on a loan.
What is an Offer on a property?
An offer is an indication by a potential buyer of a willingness to
purchase a home at a specific price; generally put forth in writing
and with some financial consideration.
How long is a Short Sale process?
Depending on the mortgage company and the state in which the home is
located, a short sale process can take between 1-4 months.
What is the difference between a Satisfaction of a
Lien vs. a
Release?
A satisfaction is a total release from the debt owed. A release is
when the lender releases the lien from the property to allow the
home to be sold. (The borrower may still be required to repay the
balance of the debt.)
What is REO (Real Estate Owned)?
After the lender forecloses on a property and purchases the lien
back, a bank can then re-sell the property in the Real Estate Owned
Department to recoup as much of the lost investments
as possible.
What is the BPO (Broker Price Opinion)?
A BPO (i.e. appraisal) is a document that gives an estimate of a
property's fair market value; an appraisal is generally required by
a lender before a loan approval of a Short Sale to ensure that the
mortgage loan amount is not more than the value of the property.
What is the borrower's Authorization to Release Information?
An authorization to release information is when the borrower gives
permission to the lender to release information to a third party.
The authorization to release information should always be presented
to the lender in writing.
What is a VA Loan?
The VA (Department of Veterans Affairs) is a federal agency, which
guarantees loans made to veterans; similar to mortgage insurance, a
loan guarantee protects lenders against loss that may result from a
borrower default.
Payment Deferment
Deferring a
payment when you already have a mortgage depends on your lender. And
it will also depend on what your definition of "defer" is. Some
lenders have policies set up for hardships, etc... The only real way
to answer this question is to call CTCSS now and ask a
representative.
Special Forbearance
Breaking up overdue payments over an affordable time period, without
restructuring original loan that will, over a certain time period,
bring the borrower current on his or her payments.
Can't find the answer to your question,
contact us.
Toll Free:
(877) 452-5328
Local:
(678) 344-3890
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