We see it all of the time: homeowners want to believe that their loan modification is going to be approved and they will get to keep their home. Unfortunately, the reality is that around 20% of loan modification applied for end up going permanent. If you do apply for a loan modification, the numbers clearly are not in your favor. This can be due to numerous factors due to not being employed, being under-employed, illness and so on. The bank will not give you a loan modification if you cannot make the payments according to their guidelines. What are your options?
- A traditional short sale
- HAFA short sale
- Bankruptcy
Their are other options, and if you would like to hear about them, please contact us. However, the above options are really the only options left for many people that find themselves in financial distress. This is because by the time many people get to this stage of financial hardship, they have reached their credit limits, used up their 401k and any other savings they may have. The important points to remember, are that A) You may be able to purchase a home again after just 2 years after a short sale, and B) You are likely to end up losing your home. Have a backup plan: if you are working on a loan mod, you need to define when you will give up and sell. A good rule of thumb is that if you have received a foreclosure date either verbally or through a Notice of Default, you should consider a short sale.
Call us if you have any questions. We want to help people avoid foreclosure.
