As a licensed California attorney with decade of real estate experience, Michael Gaddis, J.D. has the in-depth knowledge and expertise needed to effectively negotiate with lenders and banks to assist homeowners with their distressed properties. His successful track record of over 100 successful short sales and nearing 1000 successful loan modifications speaks to his ability to fortuitously handle the many trying obstacles that arise through these transactions. If you have exhausted all other efforts and you know it’s time to short sell your home, Michael Gaddis, J.D. will ensure the process runs as smoothly and timely as possible.
Why trust this difficult time and rigorous, complicated negotiation to a sales agent when you can have an Short Sale Attorney and Expert protecting your interests? Contact Michael Gaddis, J.D. today to schedule a complimentary initial consultation. You may be surprised as what you discover when you get your questioned answered by a professional. It is not uncommon for our clients who are “certain” they must sell their home, to discover they have other options for recourse. Most Realtors’ sole objective is to sell your home, ours is to understand your scenario and give you all your options and to protect your best interests. Find out what all of your short sale options are when you meet with a Real Estate Broker and Attorney.
What is a short sale? A Short Sale is a loss mitigation tactic utilized by lenders in which a lender agrees to accept less than the unpaid principal balance on a loan securing real property because, by doing so, the lender avoids the additional fees and costs associated with foreclosure. The amount remaining after the conclusion of a short sale is called a deficiency. The benefit of a short sale to the borrower is that the deficiency is typically waived by the lender and reported to the credit bureaus as “settled for less than the agreed upon amount”. This reporting, while negative in nature, is far better than having a reported foreclosure.
When to Short Sell
The answer to that question, while seemingly simple, is much more complex than one would anticipate. The first question a homeowner needs to ask is why is short sale even a consideration at all. Homeowners tend to fall into categories. The first category of homeowners are those that are concerned about the value of their house. These homeowner's only concern is how much they owe on their loan versus its currents market value. The second category of homeowners are those that are more concerned with obtaining an affordable payment. Even further some people who think they "have" to short sell may be candidates for loan modifications...
Friday, February 21st, 2014 by Michael Gaddis, J.D. Realty Group
Short Sale with Second LienCloses for Oceanside Homeowner of 55+ Community
Short Sale with Second Lien Video Transcript
**Video Auto-transcribed by Youtube, please excuse any inconsistencies.
Hi I’m Michael Gaddis. I recently closed a short sale with a second lien in Oceanside located at 3673 Mira Pacific Street this property is located at 55 and older community and has significant deferred maintenance the property had was encumbered by to reach the first was with SLS and the second lien was with real time resolutions, or RTS as the as is commonly the case when you have a person second lien holders that they are withheld by different servicers there was a battle the first lien holder SLS wanted to give the second lien holder RTS twenty one hundred dollars are eight percent other outstanding balance of course RTS wanted more money after haggling them down I eventually got into agree to 4,000 you know you’re probably thinking well four thousand is not 2100 well I approached the other agent buyer’s agent might all about problem I said it seems that we are at an impasse you know a SLS only wants to get 2100 RTS once 4,000 well after discussions you agree to approach her buyer to see what his idea less the buyer told his agent that he was willing to bring in the nineteen hundred dollars problem solved right actually not the problem is that SLS was not going to allow for third-party contributions to the second lien holder at all from NOLA period in other words SLS was telling RTS you’re getting a percent you’re not getting anything that’s it so we had this battle over egos going on between us a lesson RTS in fact we conference called RTS and as a less together an RTS pitch their point and as a less was still saying no now SLS at something interesting they said that it was based on their investor guidelines that basically their investor worse preventing them from allowing third-party contributions well I asked to do their investor was they told me and they said it was Bank of America well just so happens I know people obey America so I went to Bank of America and I told you about the problem Bank of America said well that should be adaptive an issue we can allow for a third party contribution let me research it so after the research that they can to find out they don’t own the loan anymore they sold %uh servicing rights mean the ownership rights of two nations star well it just so happens I know people in Nation star to so I want a nation star and I told Nation star the same day and they told me it shouldn’t be a problem but let me investigate in the meantime I approached RTS about it in fact I approached a very high level executive at RTS about it and I told him about the problem so apparently he had some contacts over at Nation star as well so between the executive at RTS and my cell we were able to get a very high level nation star executive involved who authorized SLS to allow for the third party contribution to go through so that we can close the short sale this is a classic case how you know short sales most believe holders can become very, very difficult situations for your average real stage it the only way that I was able to navigate through this was I had to take my realtor cap of in but my lawyer had on in trying to get someone over there who had some sort of a power to look at this objectively and say it doesn’t make sense for us to let this thing go through I it was a very good offer on the house the house was an a you know had a lot of deferred maintenance SLS didn’t want to take this ass back they were getting a very good offer on it was a good deal for everyone involved and that age to the intervention executives at Bank of America nation star an RTS we were able to close this Short Sale with a second lien.…
Wednesday, January 22nd, 2014 by Michael Gaddis, J.D. Realty Group
Mortgage Debt Relief Act Expires
What This Means for Homeowners Wanting To Short Sell in 2014
Michael Gaddis, of Michael Gaddis, J.D. Realty Group and the Law Offices of Michael Gaddis, mortgage and loss mitigation law, talks about how the expiration of Mortgage Debt Relief Act affects homeowners hoping to short sell their house in 2014.
I’m Michael Gaddis your California short sale expert I wanted to take a few moments today to talk about the Mortgage Debt Relief Act of 2007.…
Monday, November 4th, 2013 by Michael Gaddis, J.D. Realty Group
Michael Gaddis, J.D. Realty Group successfully closed a short sale on October 30, 2013 at 3586 Seafarer Dr., Oceanside, CA 92054. The property sold for $379,000. This short sale had 2 liens, the first was with ASC (basically Wells Fargo) and the second lien was with Wells Fargo. Like all short sales, this particular short sale had its share of issues. First and foremost, the property had some deferred maintenance. Deferred maintenance can be a problem because it restricts the pool of potential buyers that can purchase the property. Buyers looking to purchase properties with VA and FHA loans can run into problems when attempting to purchase a property with deferred maintenance. FHA and VA guidelines have rules pertaining to the condition of the property. Properties with issues such as peeling paint, cracked windows, missing appliances, etc.…
Friday, August 2nd, 2013 by Michael Gaddis, J.D. Realty Group
Short sales are significantly more challenging to facilitate than traditional sales. The amount of work involved in processing short sales is exponentially higher due to the need to prepare, process and submit short sale applications and documentation as well as in the need to constantly communicate with the lender and respond to their requests for additional documentation, BPOs & Appraisals, etc. Short sales get even more problematic when junior lien holders are involved. Some junior lien holders (typically 2nd liens or HELOCs) are very easy to deal with and processing a short sale request with them is a mere formality. Lenders such as Chase, Bank of America and Ocwen are usually very easy to deal with. However, lenders such as RCS, Green Tree and PNC can be problematic. Typically, in a HAFA short sale the first lien holder will allocate up to $8,500 towards the junior lien holder in an effort to persuade the junior lien holder to agree to the short sale and release the lien. As mentioned, lenders like Chase, Bank of America and Ocwen usually agree to this amount and participate in the short sale. However, some junior lien holders want more money to agree to the short sale than the first lien holder has or is allowed to allocate. HAFA prohibits additional contributions to the junior lien holders above the maximum of $8,500. The prohibition includes contributions by the seller, the buyer or real estate agents. The bottom line is that if the junior lien holder is demanding an amount exceeding the HAFA cap, the seller will have to switch to a traditional short sale if the seller wants to consummate the short sale.
The reason that some of these junior lien holders are more difficult to negotiate with than others is that their business model is based upon buying up “worthless” junior liens from investors and enforcing (extorting) their rights when the borrower needs their approval. So, in essence, these investors buy up out of position notes for pennies on the dollar and sit on them until they are approached by the buyer for a short sale, for settlement negotiations or until the value of the house rises enough to put them into a positive situation which would allow them to potentially foreclose and recover the note amount. The reason that some of these lenders become very “stubborn” on what they want is partly because of SB 458. SB 458 is a California law that states if a junior lien holder agrees to the short sale, the lien holder loses the right to pursue a deficiency judgment. In other words, if they agree to the short sale what they agree to is all that they are going to get, period. SB 458 does not require junior lien holders to agree to a short sale, it just says that if they do, then they give up any additional rights that they might have. Once the short sale is approved the borrower’s debt is forgiven.…