FORECLOSURES & SHORT SALES: NAVIGATING THE MINEFIELD

In this new webinar Foreclosures & Short Sales: Navigating the Minefield, California-based real estate attorney and broker Derik Lewis provides homeowners a comprehensive explanation of the complex issues related to California foreclosures and short sales. The webinar covers topics such as loan default, judicial vs. non-judicial foreclosure, recourse and non-recourse loans, deficiency judgments, collection actions, California anti-deficiency protections (CCP 726, CCP 580d and CCP 580b), tax liabilities (such as cancellation of debt income and capital gains) and tax exemptions (such as the Mortgage Forgiveness Debt Relief Act of 2007, insolvency and bankruptcy). A detailed explanation of the California foreclosure and eviction timeline is given, along with an overview of various foreclosure alternatives such as refinance, forbearance, modification, deed-in-lieu and short sale. The presentation also provides an introduction to a number of current federal and state homeowner assistance programs such as the Home Affordable Foreclosure Alternatives (HAFA) short sale program.

The overall goal of the webinar is to address homeowners’ most commonly held concerns so that they can make informed decisions about their situation. Derik dispels a number of misconceptions surrounding foreclosures and short sales and warns of potential traps and outright scams that are increasingly prevalent in today’s distressed real estate market, such as the “stated income trap,” short sale flippers, rescue scams and loan audits. In addition, he provides answers to important questions such as:

  • Can the lender kick me out once I’m in default?
  • How does foreclosure/eviction work and how long does it take?
  • Can the bank sue me for the unpaid balance after a foreclosure or short sale?
  • Can the IRS come after me if the lender waives the unpaid balance of my loan?
  • How does a foreclosure or short sale affect my credit?
  • What options do I have once I’m in default and facing foreclosure?
  • What’s a “Strategic Default”?
  • Am I better off doing a short sale rather than a foreclosure?

WEBINAR OUTLINE

  1. Real Estate Market and Current Downturn
  2. Mortgages and Home Loans
    1. Promissory Notes and Deeds of Trust
    2. Loan Obligations and Default Provisions
    3. Due-on-Sale/Due-on-Transfer Provisions
  3. Foreclosure
    1. Judicial Foreclosure Vs. Non-Judicial Foreclosure
    2. Redemption Periods Post Foreclosure
    3. Curing Default and Reinstating Your Loan
  4. Detailed Non-Judicial Foreclosure and Eviction Timeline
    1. Default Period
    2. Statutory Foreclosure Process
      1. Notice Of Default Civil Code 2924
      2. Notice Of Trustee’s Sate
      3. Public Auction
    3. Eviction Process and Lockout
  5. Deficiency and Deficiency Judgments
    1. Recourse and Non-Recourse Loans
    2. ANTI-DEFICIENCY LAWS
      1. California Code of Civil Procedure
      2. CCP 726, CCP 580d and CCP 580b
      3. Purchase Money Loans/Purchase Money Protection
      4. Deficiency Bar Post Foreclosure
      5. Wiped Out Junior Liens
      6. Refinanced Purchase Money Loans
      7. HELOC Trap
  6. Taxation of Foreclosures and Short Sales
    1. Capital Gain Taxation Post Foreclosure and Short Sale
    2. Cancellation Of Debt Income (Taxation of Cancelled Loans)
    3. Examples of Cancellation of Debt Income
    4. Example of Capital Gains
  7. Exemptions to Taxation
    1. Exemption to Capital Gain
    2. Exemptions to Cancellation of Debt Income
      1. Mortgage Forgiveness Debt Relief Act of 2007
      2. Insolvency
        1. Bankruptcy
  8. Foreclosure Alternatives
    1. Refinance or Reverse Mortgage
    2. Loan Work Out
      1. Loan Forbearance
      2. Loan Modification
    3. Deed-In-Lieu
    4. Planned Foreclosure
      1. Sit & Wait
      2. Walk Away / Strategic Default
    5. Bankruptcy
    6. Short Sale
  9. Short Sale VS. Foreclosure
    1. Control/Participation
    2. Negotiate Deficiency Issue
    3. Tax Planning
    4. Credit/Future Loans
    5. Possession and Eviction
  10. Short Sale Requirements
  11. HAFA Short Sales
  12. Traps and Warnings
    1. Junior Liens/Judgments
    2. Unknown Encumbrances
    3. Stated Income “Trap”
    4. Flippers
    5. Rescue Scams/Audits
    6. Inexperienced Brokers