Residential Care Facility Short Sales

Bill said: “I’m in the red by $4,000 per month, but I can't sell my facility, I’ll lose money if I sell it."

Bill bought the property for $850,000 in city of Los Angeles, California, and he paid the care home business for $80,000. He refinanced once in 2006, and locked into a prepayment penalty clause. He spent the $30,000 he got from refinancing to remodel the facility. His outstanding loan amount is $890,000, but  the current market value of his property is around $600,000. He lost three residents in 2007, and now he is about to lose his job. "What should I do? Do you have an answer for me?” Bill asked.

It sounds like you?  If you bought your facility in the past several years with 100% financing, interest only or even negative amortization mortgage, and you locked yourself into a high interest rate with a prepayment penalty clause, more or less, you have the same trouble just as Bill does. 

A short sale might be a solution for you. A short sale can mitigate your damage, and save you all the transaction expenses and continuing loss. Here are some benefits to the seller:

• You are not forced to make any more payments and the harassing phone calls from your bank will be stopped.
• You are out of an unwanted property or property that is worth less than what you owe.
• You can still take some proceeds by selling your business asset separately.
• You pay absolutely no fees on the real property transaction! All closing costs and real estate fees are paid by your lender.

In may 2009, the Obama Administration announced incentives and uniform procedures for short sale under its new Foreclosure Alternatives Program(FAP). Call us today for a free consultation, or email us at info@CareHomesUSA.com to request a detailed short sale information package.