Doing A Short Sale While In Loan Modification

As a homeowner looking in to short selling your home, chances are you have explored several different options for your situation. Many people explore loan modification as an alternative to short sales. The main difference between the two is outlined below:

Short Sale involves SELLING your home. You list it for sale with a Certified Home Rescue Expert© realtor and find a buyer. Then your realtor, with the help of a professional team of attorneys, negotiates with your lender to accept the preferably market value offer and let you walk away owing nothing. It sounds too god to be true, but it works – just ask about my 99% success rate.

Loan Modification involves the homeowner working with their lender to change the terms of their mortgage loan to make it more affordable. Past due amounts and/or the difference in the new lower monthly payments are typically rolled into the loan.

There is a problem, however, if you initiate a loan modification and then decide to do a short sale instead. Many times, the loans get “stuck” in modification, and if the property owners do not disclose to their real estate agents that they have tried to do loan modification, it can tie up the process of doing a short sale, making the process even longer and more complicated.

The best thing to do if you decide to do a short sale after trying to get a loan modification is to follow up by calling your lender, writing a statement declining modification, and getting confirmation that they will end the loan modification.

If you are interested in doing a short sale on your property instead of a loan modification, give Rob and his team of short sale experts a call at 703-212-3344 today!

Leave a Reply

Your email address will not be published. Required fields are marked *