Loan Mod vs. Short Sale

Discover a Better Route

Should I do a short sale or a loan modification?

 

Short Sale Loan Mod
  • Avoid foreclosure and avoid massive credit damage
  • No cost involved in completing a short sale
  • May receive full release of liability from the debt
  • May be able to purchase a home much faster than after a foreclosure
  • Avoid the humiliation of a foreclosure – a short sale looks like a traditional real estate sale
    		•
  • Very difficult to qualify
  • Negative Equity – May still take quite a few years to break even to the purchase price of your property
  • Companies charge up-front fees to perform loan modification services on your behalf
  • Very time consuming
  • Still some damage to credit score
    		•

     

    What are other homeowners doing?
    Many homeowners that are considering a short sale or a loan modification have decided that instead of waiting for the market to come back they are opting to sell their house now.

     

    Let us find out how long it will take you to break even

    Name:

    Email:

    My Home's Value:

    Initial Purchase Price:

    My Mortgage Balance:

    New Interest Rate:

    Anticipated Annual Appreciation:

     
    The goal of a loan modification is to reduce a homeowner’s mortgage payment and make that payment affordable.
    This can be done by:

  • Lowering your interest rate to lower your mortgage payment
  • Extending the term of your loan
  • Adding unpaid interest to the principal balance

    •  
    Temporary Loan Modifications
    Some banks are offering temporary loan modifications. This means that the bank will offer to modify your loan on a temporary basis, typically 3-6 months, and at the end of that time period may make your modification permanent. Be aware that at that end of that term, the bank is free to cancel your modification and go back to your original loan terms.

    Can I do a loan modification and short sale at the same time?
    No, most banks will not open a file for your case in the loan modification department and the short sale department at the same time.

    Do I Qualify for a Loan Modification?
    Before you decide to attempt a loan modification, you need to find out if you would even qualify under the government’s plan. We have provided a simple form that you can fill out and get the results instantly.

    Posted in | No Comments »