Ms. Hopp negotiates with their lenders to sell their house for less than is owed in order to find a willing buyer, and then, the lender is allowed to write-off the difference because they have been shorted. Hence the name "Short-sale".  Of course, the new H.R. 3648 ruling means that the IRS will not tax the mtg client for the amount they have been forgiven by their lender. (Prior to the 2007 Tax Relief Act, you had to pay Capitol Gains Tax on any loan amount forgiven by a creditor). It's a win-win for both parties, the lender and the borrower because they avoid the foreclosure process, but it is especially a big win for our Economy to have one less foreclosure. Often times, this distressed borrower can then buy another home when their job situation is remedied since they don't have a foreclosure on their credit report.

 

If they still have a job, but they are having a documentable Hardship, Ms. Hopp can negotiate with their current lender to MODIFY their loan so they can keep their house and pay a lower payment until they are back on their feet.  This is not a refinance; there are no Escrow Fees, No Title Costs, and No Appraisal Fees. This is a re-negotiation of their existing loan by lowering the interest rates and/or extending the number of years, and sometimes, even lowering the loan amount.  Ginger gets a lot of satisfaction from doing LOAN MODIFICATION because it really helps the client stay in their home and usually, they are so grateful, Ginger now has gained a customer for life in all their future real estate services.