Information You Need
The Information You Need Before Choosing a Strategy
Before an attorney — or a servicer — can give you reliable guidance, certain facts must be assembled. Gather them now, before you start a process that may be hard to reverse.
You may eventually submit some of this information to the servicer. But you should understand your strategy before sending a complete package that starts a particular review process. Once you submit a loan-modification application, for example, a clock starts — and it may not be the clock you want running.
Property Information
- •Property address
- •Property type and number of units
- •Current occupancy
- •Estimated value
- •Condition and necessary repairs
- •Estimated selling expenses
Loan Information
- •Current mortgage statements
- •Original loan date and amount
- •Purchase-money or refinance
- •Cash taken out during refinancing
- •First and junior liens
- •Arrears and foreclosure fees
- •Monthly principal, interest, taxes, insurance, and HOA
- •Fannie, Freddie, FHA, VA, USDA, or other investor
Legal & Foreclosure Documents
- •Purchase closing statement
- •Promissory notes and deeds of trust
- •Refinance closing statements
- •Notice of Default
- •Notice of Trustee's Sale
- •Collection notices from junior lienholders
- •Pending lawsuit or bankruptcy documents
Financial Information
- •Current income
- •Recent bank statements
- •Tax returns, if needed
- •Monthly expenses
- •Assets and available funds
- •Hardship and expected duration
The Most Important Fact: How Was Your Loan Originated?
Whether your loan is a purchase-money loan on an owner-occupied home (generally nonrecourse) or a refinance / cash-out refinance (potentially recourse) changes almost everything about your deficiency and tax exposure. If you are unsure, find your original closing documents before going further.
The same is true for junior liens. A second mortgage or HELOC can survive a first-mortgage foreclosure and pursue you for the full balance. Knowing whether you have one — and how it was originated — is essential.
You Don't Need to Upload Anything to Use This Guide
Secure document submission comes after you request professional assistance. For now, simply gather the information so you understand your own situation. You can continue through the guide without uploading a single document.
Want This Reviewed for Your Situation?
Every situation is different. Get a free, no-obligation review with John McConnin, California Attorney & Broker.
(858) 324-8855