Divorce
Endorsed by NAR for Foreclosures and Short Sales
Short Sale & Foreclosure Resource
Struggling to make your mortgage payment?
Today we sharpened our short sale and foreclosure sword – YES, it’s a battle! Armed with a new designation from the National Association of Realtors (NAR); called Short Sale & Foreclosure Resource (SFR), now we’ve got the most recent tools to fight a foreclosure and win.
There’s plenty of talk about a potential foreclosure wave once all the COVID forbearance terms have come to an end.. so its important to stay fresh on bank policies, foreclosure timelines, and tools to use to save your property from foreclosure, right?!
Yes, we made it through the recession of 2007-2011 closing plenty of bank owned properties and short sales, but that was 10+ years ago. Platforms and policies have changed.
REO stands for ‘Real Estate Owned‘, and is a common term for a property that has been foreclosed. REO’s are property the bank comes to own because the borrower defaulted or could not financially afford to remain in the property. As a foreclosure resource, we can help you STOP your property from becoming a foreclosure, and we can also assist banks in selling off their REO inventory.

Who’s involved in distressed property situations
Servicer – who you make your mortgage payment to, they may or may not own your loan.
Investor – beneficiary entity who owns the promissory note & mortgage or deed of trust on a property.
Borrower – party in distress; typically struggling to make payments or need to sell when equity is negative.
Buyer – potential purchaser of the home
GSE – Government Sponsored Enterprises (Fannie Mae, Freddie Mac, and others in the secondary money market)
Important Foreclosure Terms to Know
Deed in Lieu – Involves swapping your keys in exchange for relief on the mortgage. Sometimes this will lead you to a 1099 for the money returned. Never do a deed in lieu before you understand the tax ramifications.
Loan Modification – Loan Mods are a permanent change in one or more of the terms of your loan. These must be approved by the investor, servicer, and you. It typically reorganizes the mortgage into something more affordable so you are able to stay in your home.
Notice of Default (NOD) – Official notice of default, and begins your foreclosure timeline. All borrowers have at least 90 days to bring a loan current after a NOD is filed.
Notice of Trustee Sale (NOS) – Official notice of when the foreclosure or auction will take place.
Foreclosure Sale – The actual sale of the property where the title is transferred. Homeowners become tenants upon sale, and lose rights to property ownership.
What are my options to avoid foreclosure?
There are many, but you need to act fast and regularly. One place to check is the Consumer Financial Protection Bureau (CFPB) to help you resolve any shady practices in your loan.
Another option is HHF – Hardest Hit Fund which has been extended through Dec 31st 2020. This program is in 18 states and it helps struggling homeowners with mortgage assistance.
MakingHomeAffordable.gov has many trusted routes you can take, be sure to research so you know your most up to date options. Here are their current tips to avoid foreclosure.
Furthermore, there are local nonprofits in many areas who can connect you with the right resources to save your home. Contact Angie by text at 949.338.7408 ASAP if you would like an Orange County referral.
Reinstatement vs Redemption period
Reinstatement is the 90 days you have to reinstate your loan after you’ve received your official Notice of Default (NOD). Redemption periods do not apply to all states, and they begin after the property is sold in a judicial foreclosure. California is NOT a redemption state with judicial foreclosures…once the property is sold at auction it is gone.
How long does it take to foreclose on a property?
Every state is different, and has different laws. It usually takes anywhere from 90 days to 3 years, depending on the condition of the market.

Short Sale to Avoid Foreclosure
In order to complete a short sale, you must show hardship. Every bank defines this differently; but it can include illness, job loss / unemployment, divorce, 50+ mile job relocation, business failure or natural disasters.
Most banks have a ‘Short sale package‘ available on their website, and this includes a list of the documents you need to submit in order to be considered for a short sale. Some of the common items requested in a packet are:
Listing agreement
Short sale disclosure form
Listing agreement addendum
Authorization to release info form
Federal & State disclosures
Before you fill out the paperwork above it’s important to check for recourse in your state, or you could owe a tax bill on the amount you’ve been forgiven. If you’re unsure about this, check with your CPA.
Furthermore, you must get approval. Approval is a gift.. even though it doesn’t feel like it 😦 Not only do you need approval from your mortgage company, you’ll also need approval from any and all junior lienholders including 2nd mortgage, HELOC, & other liens. If you do not have approval from ALL liens then the short sale will not happen, which is why you need to communicate with your debtors early and often!
Sometimes additional costs will be paid by the investor, but you have to know how to work this into your Estimated Closing Statement (HUD1).

Short sales and foreclosures are TOUGH to navigate. Please reach out to us if you need help. Angie keeps everything confidential and will always help you with creative thinking so you have the most options with your home. Contact her at 949-338-7408!
Furthermore, Angie would love to connect with Asset managers, outsourcers, distressed property managers, and others in the banking industry who are looking for a quality agent who effectively works bank systems to get REO properties sold.
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Real Estate and your Divorce in OC – Protect Yourself!
A Divorce team on YOUR side
Going through a divorce is a stressful life event that unfortunately happens to about 72% of us here in Orange County, which is 22% over the national average. It is much more common than we think, and we are never prepared for it because we think we will be together forever. You probably know someone going through one right now. We hope it never happens to you or anyone else we know and love, but if it does we want you to know what you can do to make it easier. Divorce can also be one of the most lonely times for people, losing your best friend that you were going to spend the rest of your life with is far from easy. In order to make the process a little more easy, you need to find yourself a support system and a team that can help you through all of the legal parts that come with.
Who should be on your team?
Divorce Attorney
The last thing you want to think about our deal with during a divorce is what legal matters need to be settled. Having a good divorce attorney in your corner is key to helping it be an easy transition. If you don’t feel like doing research on divorce attorney’s don’t worry, we know the best one. Elisabeth Donovan is a member of our LeTip group that we see every week and we think she would be a great asset to your team. She is a certified divorce financial analyst and divorce attorney so she is at a higher level than other attorneys. She is experienced in separation and divorce, child custody and child support. She is passionate and aggressive, we’d want her on our team if we were in the same situation.
Lender
When going through a divorce homeownership and our credit can take a hit. You want a good lender on your side who will make sure you are able to purchase a home again. Derek Beisner is always one of your favorite lenders who also has his divorce designation. When one spouse says; ‘I’ll just keep the house,’ Derek makes sure not only they can afford it, but the spouse leaving can also afford to go off on their own and obtain financing. This is a critical step most divorcing couples forget to handle in mediation, and it usually ends up in one party being forced to sell or foreclose within 6 months to 1 year. We won’t let this happen to you.
Title
Sometimes debt gets so high in a separated household that second loans and Home Equity Lines of credit get taken out. Are you aware of everything that owed on your home, and every debt that’s connected to each of you? We have Mike with Team Langgle at your service to do a deep title search on all your assets, AND each party’s social security number, so nothing pesky pops up later. It’s important to know these things when you are dividing your assets equally!
Realtor
You know us and we weren’t going to leave your real estate agent off of your team. Having your trusted agent in your pocket during this time is so important. Whether you need to work with them to help you both sell your current home or you just need help finding your new home for your new chapter – having a real estate agent you trust and enjoy working with is key. We at the AskAngie team have the heart to help people going through a divorce. We’re not just trying to just sell your home we’re going to research and protect you to ensure you have a right size residence. Yes, sometimes that means sales, but frequently we just help put your ducks in order FOR FREE with no obligations. We work in conjunction with attorneys like Elisabeth to make sure every property concern is covered.
Insurance
Did you know insurance usually goes up on a property after a divorce? Or even worse, some properties are uninsurable due to new guidelines? Scott Assali with Advantis Insurance can check your home(s) to make sure prices aren’t going up and you don’t get stuck in a pickle later with any insurance issues. If you’ve had too many claims recently, you could be in this boat. Be careful and let us confirm every single one of your bases is covered.
Credit Repair
Divorce can ruin one or both parties credit, and you’re going to NEED good credit to start your next chapter right! Sean Bruce with Executive Fix has flexible 3-18 month programs to help you boost your score back up and bounce back better than ever. Little things can make a big difference with your credit, and you have lots of big things to focus on. Sean cleans up your credit while you’re putting the other pieces back together.
Tax Advice
You may be moving to a new tax bracket or selling your home and paying Capital Gains. Irene Mack, CPA knows everything about the new tax laws and can help you understand what your new tax obligations will be. If you have back taxes owed, she can also assist to set you up with a payment plan. Having any outstanding tax obligations during the years that you were married can fall upon you both for years to come, and Irene can help you resolve that so you don’t have lingering issues.
Trust Advice
Are you breaking up or changing a trust? Brent with Pickelsimer Law is not only a Trust Attorney, he is also a judge. Brent is only available by referral, and he can guide you through all the important considerations when dissolving or creating a trust. He does house calls, too, if you’re too busy handling other items to meet at the office. Most of our team does, for that matter!
Financial Advice
Need to change up your investments? Update your beneficiaries? Have fresh eyes take a look to make sure you are making the most out of what you’ve saved? Barbara Loos has been with Prudential for years and will take a look at your current investments with no obligations and let you know if she thinks you’re in a good place or she sees opportunity for bigger gains. Don’t lose sight of your long term plans during this difficult time.
Mobile Notary
With all the documents flying you’re probably going to need a notary, a few times. Nicki Walsh is so kind, caring, and compassionate, you’ll want her to help you with all your paperwork signings. She can come to you or meet you at the place of your choice.
Fix up crew
If you’re selling, renting, or even keeping your home but find out repairs are needed, we’ve got everyone you need to help you from Ken with Beacon Carpet & grout cleaning, to John with Reddel Draperies. Or maybe you don’t need anything ‘fixed’, but you can’t stand looking at the exact same house. Gina Lauren can come help you transform your space with her interior design expertise.
Clutter crew
Oh, and we also have the fasttrack number to Salvation Army. Most people call and it’s 2 weeks out and a 4 hour window…not us. We call and set an appointment TIME where they come and pick up EVERYTHING regardless of condition. It’s all part of our RCS-D designation relationships to bring you one less worry.
Emotional support
Obviously this is such a hard time with so much change. We’ve got you covered on that end too, with referrals for many therapists, help groups, churches, & holistic help practitioners to keep you operating at your best mentally. The more people you can have on your team to share the heavy load during this time will make your life easier and less stressful. Go ahead, lean on us!
Next Steps
Together with your team you will be able to mastermind the next steps of your life and where the new chapter will begin. Your divorce attorney will make sure you get everything you want and need throughout the divorce process. Then your lender and the rest of the team will make sure your credit, savings, and mindset stays strong so that you are able to buy again sooner than later. Lastly, your Realtor will help you find the perfect new pad for your next chapter, and you’ll be well on your way to your best life!
If you need more recommendations/advice or are currently going through a divorce and need our team to be your support system contact Angie at 949-338-7408.
Read Full Post | Make a Comment ( None so far )Homeownership and Divorce: What To Do About Your House
The evil D word, nobody wants it, but it happens to 50% or more of us. Orange County sky rockets the national divorce average from 50% to 72%. Did you know that divorces spike in August and January? As summer winds down, we thought it would be a good idea to give you some pointers on this super touchy subject.
Listing your home during a divorce
MANY of our listings are divorce sales, and we strive to provide solutions to better protect our clients. It’s a HARD time, and we want to make it as easy as we can when it comes to the most important asset. For this reason, I just earned my RCS-D designation with Professor Kelly Murray, who has degrees from Stanford & Harvard Law. Watch this video to find out some important tips to a successful resolution of the house during a dissolution:
Real Estate Collaborative Specialist – Divorce
Did you know that less than 50 Realtors in Orange County, CA have this prestigious designation? Did you know the standard in divorce when it comes to real estate is an appraisal and a mortgage statement?? That’s IT.
- NO inspection reports
- NO previous title search for liens or secret mortgages
- NO insurance search to confirm the property can be refinanced
- NO preapproval to make sure the home can *actually* be refinanced by one party or the other on their own
Property division is permanent, and not all divorce attorneys are stellar when it comes to real estate handlings. Things you sign in mediation are binding, and sometimes you feel rushed into these decisions. CONTACT US for a no obligation conversation on how you can protect yourself before you ever walk into court or mediation.
Hard Scenarios You MUST Consider During Divorce
Scenario 1: “Oh, just let them keep the house.”
Are you sure about that? One late payment can be 100 credit points! Do you care about your credit score? Ask yourself: Can you or your ex ACTUALLY qualify for the refinance?
- For example: Can you use your alimony or support payments, and if so, how soon? Many banks have a 6/36 rule. They want to see 6 months consistent income, and receive evidence that 36 months of income will continue before they will lend.
Scenario 2: “It’s ok, I’ll just go buy another house.”
ASK: If you allow your ex to keep the house, will YOU still qualify for with your name on the old mortgage? Can you start your next chapter?
- For example: In the eyes of a lender, both parties don’t have 50/50 responsibility on a loan……you each have to pay 100% if the other defaults. Does this ruin your chances of qualifying for a second home in your name? Make it a point to find out before you make a promise you can’t keep.
Scenario 3: “I lost my job / health & I can’t pay.”
Consider what might happen in a worst case scenario. Would you be able to carry two homes to save your credit? Or possibly be willing to sell in a down market?
- UNFORTUNATE FACT: Only 25-30% of individuals regain homeownership 7-10 years after foreclosure. Don’t let your divorce put you into this pool.
If you need help deciding what to do with your house during a divorce talk to the proper Divorce Professionals who can give you the protection, tools, and timeline to make your future a success. We have an entire team waiting to assist you, from moving out all clutter for free to pulling the necessary paperwork to know what you truly owe and own on your properties.
Please reach out to Angie via phone or text anytime at 949-338-7408. Always confidential, always caring, always at your service.
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