This very question is on the mind of millions of American’s as we speak. Short Sales and Loan Modifications are two terms that were previously unheard of for most, yet they are now everyday words.
Distressed home-owners should picture life without the burden of a mortgage debt that is all-consuming and overwhelming. Visualizing a life where there is no fear of answering the phone or checking the mail-box is a critical step in preparing to regain control of their financial life.
Having said that, there are three solutions for homeowners who may be behind on their mortgage:
- Get the loan current and keep it current (Loan Modification)
- Short Sale
For the sake of this article, we are going to throw away the foreclosure option as it is never the best answer.
That leaves us with Short Sales and Loan Modifications.
A loan modification occurs when a lender agrees to change one or more parts of the loan terms in order to make the loan more affordable to the borrower (while still being able to repay the lender). The loan modification is best suited for borrowers who are behind on their mortgage but have a definitive plan for repaying their debts. Generally speaking, loan modification candidates have had a specific incident or occurrence that has caused them to fall behind and is curable. The curability of the problem is significant. Without it, the lender will be unlikely to agree to new terms.
On the other hand, Short Sales are more appropriate for borrowers that have little hope of being able to afford their mortgage, and those who have no desire to keep their homes. For homeowners experiencing hardship, this may happen due to a long term job loss, extended illness, payment increase or mortgage adjustment, divorce, relocation, death of a partner (Read more about Understanding a Short sale HERE). A bank is more likely to agree to a short sale if the borrower can demonstrate a verifiable hardship.
The lender also wants to see an effort for the property to be sold for the most amount of money possible. Lenders like to see the property listed with a reputable Realtor who is a specializes in short sales, these agents are highly trained best suited to assist you in your efforts as they know the short sale process inside and out and will do everything possible to cure the problem.
Make Sure Your Realtor Is a Short Sale Specialist
Short Sales made up over 40% of all home sales last year. In light of this fact many real estate agents have rushed out to take one or more short sale educational courses and upon completing these courses immediately begin promoting themselves as short sale specialists. What these agents fail to realize is that these transactions are highly complex and require a very specific knowledge and skill set which cannot be acquired through an educational course.
We at Distressed Property Solutions Network have been actively involved with short sales for over 10 years now and in this time have assisted countless homeowners in avoiding foreclosure using our Trademarked “Lock Squared” Program. (Read more about Lock Squared here). Our rate of success is more than triple the national average and this in part has lead to our recognition as the premier short sale specialty group in Chicago and the surrounding collar counties.
Short Sale or Loan Modification
These are unprecedented times in our country’s economic history. Unfortunately, foreclosure and financial distress is reaching into the lives of millions of American homeowners. If you or anyone you know is experiencing hardship we want to let you know we are here to help, and are happy to assist you in discussing your options and determining which solution is best for you. All consultations are at NO cost and completely confidential.
If you’re having trouble deciding whether your property qualifies for a short sale or you want to stay in your home and request a mortgage modification, give us a call.
Distressed Properties Solutions Network
The Distressed Properties Solutions Network starts our program with a FREE consultation and Situational Property Analysis. During the consultation we will listen to your goals, help you with the reality of the situation and present you options that are in your best interest and in line with your goals.
We have no interest or financial gain by suggesting one strategy or professional over another, except for your best interest.
Foreclosure is a complicated and emotionally draining process. If you are having trouble with mortgage debt, it’s often best to research many options. Distressed Property Solutions Network has access to a team of professionals that work together to help you.
The Network has a documented record of success in matching owners with professionals that utilize all options and strategies. Our mission to do all that can be done to help you accomplish your desired outcome. Stop a sale, defend a foreclosure, find a way to work it out with the bank, short sell or bankruptcy as a last resort. Our team looks at each file as a long term process, and advocates credit repair and rebuilding from day one. You CAN apply for a mortgage with our mortgage partners one day out of foreclosure or short sale. So preemptive work is always in the works if that is the direction you want to go in.
Call for a NO COST in depth review of your situation. The networks legal partners are available to you on the first call ready to work with you immediately.