Distressed Property Owners

Miranda Group provides an array of solutions to distressed property owners.

Although short sale is a preferable and common solution, we also offer services to assist with Forbearance, Loan Modification, Deed in Lieu or other creative financial solutions.

Short Sale: also called "Short Pay" or "Pay Off" is a process in which a lender agrees to receive a lower amount of an owed debt in exchange for the sale of the property to a third party usually at no cost to the borrower.

The benefits of a Short Sale far surpass those offered by other solutions but in order to obtain them the process must be conducted by an experienced loss mitigation professional/s.


Two key benefits of a Short Sale are:

1. Protecting your credit. Foreclosure damages credit up to 7 years and bankruptcy up to 10 years.

2. Controlling future costs. If property is sold at a discount (as in most foreclosures) you may owe taxes to the IRS, and deficiencies, and other expenses to the lender. If the lender forecloses on the property, you have no control of the price it will be sold at. The lender can still pursue you for all losses and expenses. In a short sale you have more control of the sales price of the property, and if represented properly many of the terms can be negotiated to benefit you.


Following is a short list of the main components of a short sale transaction:

1. Property Owner contacts Miranda Group and/or registers.

2. Miranda Group aggregates all required information from the property owner and from sources such as title insurance companies, lenders, Mortgage Insurance companies, county court house, Sheriff etc.

3. Property owner signs listing agreement with an affiliate real estate agent.

4. Our affiliate real estate agent will function as the listing agent and in some cases as the selling agent as well and locate potential buyer/s.

5. Miranda Group prepares a complete file and begins negotiation with lender or lenders or with creditors in case of other liens or judgments, federal liens etc. over the transaction terms.

6. Miranda Group then negotiates with the lender (or lenders, in case there is a second or third mortgage or with creditors in case of other liens or judgments, federal liens etc), the amount that the property can be sold for and the fees for all parties involved. (Fees in vast majority of cases are paid by the lender).

7. The lender will send an appraiser to receive an estimate and may require more documents and information.

8. Once the bank approves the transaction the property can be sold and the proceeds from the sale, less expenses will go to the lender.


Forbearance: If you are unable to make payments because of a temporary financial strain, your lender or servicer may agree to grant a forbearance, during which payments on your loan are postponed. Your lender or servicer may also agree to a forbearance if you are currently able to make payments, but not able to make up for previously unpaid payments.

Modification: In a loan modification, a lender agrees to modify any or some of the terms of the mortgage. This is a process where an existing note is modified, but not cancelled. Changes may include: extend the term of the loan, change the monthly payments, change the interest rate, etc.

Deed in Lieu: A Deed-In-Lieu of foreclosure is a voluntary conveyance of title in exchange for a discharge of debt. Note that your house must be free of other liens and you must have clear title.

Other Creative Financial Solutions are available.

* Clients are advised to consult with a tax professional regarding the potential tax consequences for their particular situation. Miranda Group is providing a service in response to a complex situation and offers a recommended solution where possible. Nothing is represented as tax advice to our clients as every situation may result in different tax consequences.