Real Estate Rescue Network
 Call us at: 816-875-8481

Real Estate Rescue Network Services
Below is an explanation of the different types of services that we offer. If you need help and don't see exactly what you need, please feel free to give us a call. 

In most cases our Network Team Members will need additional information from you in order to assess your situation completely. Before you call, please answer all the questions and gather all the information requested. Click here for the list. If you call without doing this, the Team Member assigned to you will not be able to complete the interview. 

We want to help you keep your home, if that is your desire.

 It may sound silly to ask if you want to stay in your home, but more and more individuals and families are just wanting out. The American Dream for them has turned into a nightmare. 

The reasons are diverse. For some they have lost jobs or have had their pay cut. Others have found medical expenses, an illness, a divorce, or some type of a lawsuit overwhelming. Those families that purchased homes at the peak of the market in 2006-2007 are now finding that their dream is worth 30%-40% less with little hope that it will ever return to the initial value (must less appreciate), and if it does it will be many years in the future. If you were sucked into the hype of "no money down" or worse yet, "borrow up to 125% of the value of your home" you are not alone by any means. There are many thousands of families all in the same boat. Another incentive that turned sour for numerous homeowners was the ARM - the adjustable rate mortgage. Just as individuals were expecting to receive their normal annual raise that would have allowed them to comply, they instead found themselves being laid off or forced into early retirement because of the economy. The majority of families with distressed properties have gotten there by no fault of their own.



Loan Modifications (HAMP)

 If you want to stay in your home and weather the storm, we applaud you and will be glad to help in any way we can. A Team Member will direct you to the HAMP - Home Affordable Mortgage Program and show you how to complete a Loan Modification Application. See Home Affordable Mortgage Program for qualifications and benefits.

Comparative Market Analysis 

Our evaluation begins with a CMA, or Comparative Market Analysis of the homes in your area to determine the current value of your property. Your Network Team Member will explain in detail what the real estate market experts are predicting for the next few years, and finally working together we will help you with create realistic goals for your future. 

Short Sale (Hardship or Strategic) Package

The definition of a short sale is: A transaction where the sale price is insufficient to pay the total of all liens and costs of the sale, and where the seller does not bring sufficient liquid assets to closing to cure the deficiencies.

 Here is an example that is used in the book Strategic Short Sales: Morally Wrong or Financially Prudent? You can get the book by clicking on the link to the left. It is available in two formats; a PDF version for $7.95 or the regular soft cover for $17.95 plus shipping and handling. Here's the excerpt:

 Selling your home through a short sale need not be a shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves underwater — that is, they owe more on their mortgage than their house is worth. 

Late last year CNBC Financial Guru Jim Cramer was telling homeowners to “Just Walk Away.” Watch the video on YouTube.com.

 We are clearly in uncharted waters. The current housing crisis is different from all the previous housing recessions. It is now public knowledge that many financial institutions sold mortgages in a deceptive manner — for example, by approving people for loans they couldn't really afford. If that is the case, then why should homeowners feel obliged to honor their commitments? Skeptics argue there’s a moral hazard.

 From the homeowner’s perspective, why should they remain in homes that are depreciating? Often times it’s possible to rent the same style home in the same area for half (or less) than their current mortgage payment. Assuming it takes years for the market to recover, the homeowner who sells his home via a short sale now will be further ahead financially than the person who stuck it out.

 Here is an example:

 Starting May of 2011 -

Homeowner paid $500,000 at the market peak in late 2006. Homeowner put down 5% and did a 7-year interest-only mortgage. Monthly payment including PITA and upkeep is $4200.

 § Property has depreciated 40% and is now worth only $300,000. Owner has negative equity or is underwater by $200,000.

 § Market is continuing to depreciate and is projected to possibly level off in mid to late 2012. In other words, months and months of more losses for the homeowner. Many economists are predicting prices will NEVER recover to boom-level pricing.

 Option 1

 Our homeowner can stick it out and keep the home. He will continue to make his monthly interest-only payment/house upkeep of $4200 per month. He will pay $50,400 per year to keep the home. He is deeply underwater in the home with massive negative equity. Somewhere in mid 2012, the home’s value has stopped depreciating. The market stays flat for at least a year thereafter, likely much longer. The inventory levels have to sell off. In late 2012 or early 2013, the market then starts to slowly appreciate again. Best case, the home starts to appreciate at 5% per year. Based on this rough example, it will take at least 10 years for that home to be worth what the owner paid in 2006. During that time, the homeowner will have paid $50,400 per year. Do the math. That’s $352,000 spent to stay in the home to stick it out. That’s IF there’s 5% appreciation and IF that’s consistent for 10 years.

 Option 2

 Homeowner lists the home with an agent trained in doing short sales. The home sells and the bank agrees to accept the loss in equity as the short sale. Bank loses $200,000. Homeowner moves to a rental home in the same neighborhood and pays rent of $2000 per month or less…That’s half of his previous house payment. Our homeowner no longer has to worry about repairs or property taxes while getting back on his feet. Our homeowner saves the difference between what he had been paying for the owned home and his new rent payment. That’s $26,400 per year. Yes, the homeowner does have significant negative credit ramifications as a result of his short sale. This negative credit will prevent him from buying a home for the next 18-24 months, if he is looking for a government-backed mortgage. With this option, he can sit out the real estate recession and jump back in when the market has hit bottom. If he times it right, he can buy at the bottom of the market and have a significant down payment resulting from the savings created by downsizing his house payment. Some homeowners even experience faster credit recovery due to a more favorable debt-to-income ratio by no longer having a huge mortgage.Remember that your payment history accounts for 35% of your credit score; it is not your entire score. 30% is your length of credit history, 15% has to do with new credit established, 10% is the type of credit used, etc. 


If it is not possible to keep you in your home or you feel it is financially prudent to move on, your Network Team Member will work with you to plan a strategy to get your home sold at a price that your mortgage servicer will accept. When a realistic offer from a potential buyer is received, your Team Member will compile the necessary short sale package (with your assistance), send it off to your lender or servicer, and begin the negotiation process on your behalf. See Short Sale Package to get a better idea of the information that will need to be gathered for your package.

More and more servicers are understanding that short sales are going to save them a huge amount of time, effort and money over having to deal with the homeowner with a foreclosure. In fact servicers are even working towards standardizing the process for handling short sales. See the article Uniform Short Sale Standards Coming for Freddie Mac and Fannie Mae in the Short Sale Standards category on the BLOG. 

Short Sales vs Foreclosure are definitely in your favor also when you consider credit ramifications. Although everyone is different depending upon the way the servicer reports the sale to the credit bureaus, a short sale generally only affects credit scores around two years while a foreclosure can affect you for seven to ten years and some say even after it has been removed from your scores. 

Whether you think you may need a short sale of your home or if you are considering a strategic short sale because you feel it is the most prudent solution, give us a call. Do not wait. Time is not on your side when it comes to short sales, foreclosure, and bankruptcy.

Home Affordable Foreclosure Alternative (HAFA)

 Previously, a homeowner must have pursued a Home Affordable Mortgage Program loan modification and been unsuccessful before they could participate in HAFA. This requirement has been waived. Your Network Team Leader will help you complete the necessary form to allow you to apply to HAFA for their benefits. See Home Affordable Foreclosure Alternatives for more information.

Distressed Property Attorneys

 We recommend that you always seek legal advice from an expert. In this case we are going to recommend "distressed property attorneys" or "bankruptcy attorneys" that have had experience with short sales and foreclosures. We know of a number of homeowners that got advice from the "family attorney" and may even have been given erroneous information. 

Give us a call. Our Network Partner Attorneys are qualified legal experts that are up to date on the facts about short sales, foreclosures, and bankruptcy.

Certified Public Accountants with Short Sale and Foreclosure Experience

 We recommend that you always seek legal advice from an expert. Many accountants do not have significant experience to help you after a short sale or foreclosure. Network Partners with Real Estate Rescue Network are experienced and ready to help you. For more information on the tax ramifications of short sales and foreclosures, click HERE.

Credit Repair Services

 It may seem like there is no light at the end of the tunnel when you first face the facts in this difficult real estate market. But those who diligently researched their options and made choices that were in the best interests of their families are already on their way back to reinstating their credit and looking forward to owning another home.

 When you are ready we have experienced Network Partners who specialize in restoring credit after short sales or foreclosures. You will see that the light at the end of the tunnel wasn't a train after all. .

Need another service? Give us a call.