Loan Modification Or Short Sale?
For homeowners finding themselves upside down, two options might seem palatable: loan modifications and short selling. Which one is right for you? It depends on what your short-term and long-term goals are, as well as your current situation.
When should you try to do a short sale? If you've got well-documented financial hardship, can't make your mortgage payments, and want out of your home, then you should talk to your lender and see if you can arrange a short sale. It's important to note that the lender has the final say in whether or not they'll agree to a short sale. If you can't back up your request with firm proof of financial hardship, it might be difficult to get.
When should you try for loan modification? If you're upside down but can still make payments, or if you like your home and want to try and stay in there, then you should try to negotiate a loan modification. Remember, banks and lenders want regular payments to keep coming in. There's a lot of time and money involved with foreclosure, so if they can avoid that through an agreeable, smooth way, they'll likely go for it. Loan modification can be as simple as changing the length of the mortgage so that the monthly payments are lower. Also, if this is your secondary or investment residence, a short sale is highly unlikely, so you'll most likely want to try loan modification.
Short selling affects credit while loan modifications don't because you're not borrowing more money. For credit score concerns, absolutely do not miss any payments and don't look at foreclosure or short sale.
Loan modification or short sale? It's important to consider the big picture before you make a decision. Think about your family's needs, your financial situation, and your long-term goals, and consult a real estate professional to understand the options before you commit.
Thanks for reading my post, Israel Gonzalez
Israel is a Real Estate Broker at Beale Properties
Phone 831-636-8858 Email Israel@ighomes.com
Israel Gonzalez specializes in loan modification help and never pay the bank another penny. Homes for sale in Hollister CA, Hollister Short Sales, Hollister Foreclosures, and Hollister Distressed Properties.
www.bestreohomes.com www.nicereohomes.com
The views published here are the opinions of the writer and are not a substitute for legal counsel.