Long Beach California Real Estate Loans

Long Beach, CA.  Attached you will find an article written by a friend of mine, Steve Manos, Steve has cleaned up the credit of several clients of mine and has prepared their credit so as to be acceptable to the banks.  In his article, ‘Short Sales and Foreclosures,’ he discusses the ramifications of a short sale to a borrowers credit.  This is extremely relative information to our current market place. 

Many borrowers are opting out of their mortgages and attempting to see if they can just get free of their debt burdens.  Steve Manos, who works in association with attorneys, says that when a bank accepts less money then what is owed to it, then the debt is deemed legally satisfied. 

I encourage all readers to consult with their Legal Counsel and CPA before deciding to let their homes go into foreclosure, because there are other ramifications besides your credit ranking.  This author does not endorse the following article, but has posted it in an better effort of discussing the market place and current events affecting everyone that either owns real estate or would like to purchase real estate.

Short Sales and Foreclosures

 A mortgage account that is satisfied by short sale is a ‘payment in full.’
 A creditor, mortgage holder, does not have to agree to accept less than what
is due on a loan contact. But, once the lender agrees to a lesser payment
in full satisfaction of the loan against real property, i.e., agreeing to a

‘short sale,’ a new contract exists and the earlier obligation is thereby
eliminated, i.e., extinguished. An extinguished agreement is one that never
existed [or in legal terms], can never be considered to have existed.

 The account is thus paid in full and resolved by way of ‘Accord and
Satisfaction Agreement’ which extinguished the underlying debt and replaced
it with a new agreement thus eliminating any of the past credit history
associated with the account. The creditor agreed-to and authorized this
payment as ‘Full Satisfaction’ of the debt thereby replacing any previous
obligation. As such, this item must only be reported as paid in full and
all other past credit history associated with the account must be deleted.
It is no longer relevant to the new agreement the lender authorizes.

Even if the short sale isnt consummated, but the lender gets the property
back, the account is still deemed legally satisfied. It must be listed as

account paid, satisfied or otherwise resolved by disposition of collateral
after contract termination. The reporting of this account as a foreclosure
is inaccurate, incomplete and misleading because the exchange of the

property, the collateral, for satisfaction of the debt fully resolves the
underlying debt. That is the purpose of a Deed of Trust and for having the
property as collateral for a loan, to protect the lender. Additionally, the
‘one form of action’ rule prohibits the misleading reporting of the status
of a real estate secured loan in that the creditor has a right to the
property or money, but not both. An account satisfied by collateral must be
listed as paid in full, not as foreclosure. An account satisfied by a
‘short sale’ must be listed as paid in full because thats what the lender
agreed-to. This is simple stuff and legal. The credit reporting companies
know this, but they are in the business of ‘trashing’ ones credit, so these
legal rights have to be aggressively invoked on behalf of consumers.


Sincerely;

Steven J. Manos
President


Center For Better Credit
3857 Birch Street No.630
Newport Beach, CA 92660


A Non-Profit Corporation Dedicated To Informing And Helping Consumers
 Deal With Their Credit Issues & Resolve Their Credit Problems.


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