What is a short payoff?
This is when we get you approved on a new loan with a lender based on current market value. We then present this loan to your current lender and ask if they will approve a short payoff. You don’t have to be late YOU CAN’T BE LATE to qualify. (They have the right to accept or decline the offer or counteroffer).
Here is an example of a loan Short Payoff:
You currently owe 325,000 on your home. It is now worth 200,000. We get you a loan based on 90% of the market value of 200,000 that equals 180,000. You will have the same insurance payment and taxes, unless we can get those lower too. If your loan cost are 7500.00 that will come out of the loan of 180,000 any delinquent taxes or taxes due will come out of that loan as well. If you have 10,000 in total costs we will offer a short payoff to your bank of 170,000. That is a short payoff.
Loan amount and pay off amounts will vary from loan to loan. I will provide you with a good faith estimate that will show you exactly what your payment is on the new loan. All loans are 30 year fixed at current market rates and there isn’t a prepay penalty.
Will I have bad credit?
Here is an actual statement reported on credit for a client that I saved 300,000 dollars doing a short payoff last year in July of 2008:
HOMEQ SERVICING
6930323250126 |
08/08 |
02/05
07/08 |
$599900
MTG |
$0
360 &0 |
$0 |
38 |
0 |
0 |
0 |
SETTLED
XP/TU/EF |
| |
ELECTION OF REMEDY-REPORTED BY SUBSCRIBER; ACCOUNT PAID IN FULL FOR LESS THAN THE FULL BALANCE; CONVENTIONAL REAL ESTATE LOAN, INCLUDING PURCHASE MONEY FIRST |
This is not a negative report and my client still has very high credit scores. If you don’t make you’re mortgage payments that would cause a negative credit rating.
I hope that this explains the new program available, please feel free to contact me for a quote based on your individual situations.
I have provided a link on this website under Business Links to the IRS that will help explain to you the tax information. I would also advise that you talk with your Tax Consultant for your specific situation.
Sincerely,
Lakeside Lending of California, Inc.
Download printable version of this information and accompanying paperwork.
