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    Modify Your Loan or Short Sale Your Home?

    Every year more and more homeowners face the harsh reality of their home going into foreclosure. When foreclosure threatens a home or business property the feelings that the property owner might experience are: fear, uncertainty or even shame. These feelings are all very natural and they are understandable but, the property owner should not think that they are alone in their predicament because, millions of other property owners in United States are experiencing the very same thing right now. Even though foreclosure is one of the most widely recognized ways to get out of an underwater home two other options are available: loan modification and short sale.

    What Is Loan Modification?

    Loan modification, restructuring or mortgage modification as it’s known in the real estate industry is an option that’s offered to the borrower when they’re facing economic hardship and having a problem making their monthly mortgage payments. The lender typically works with the borrower or homeowner to help them change the terms and conditions of their mortgage loan. The new mortgage or workout plan could result in permanent or temporary changes to their mortgage loan which can help them reduce their payments by as much as 31%.

    Almost everyone in qualifies for loan modification in this day and age especially those homeowners who have mortgage payments that exceed 38% of their combined household income.

    Get To Know the Short Sale

    Banks love short sales more than foreclosures because, a short sale will enable the bank to get the property back on the market quicker and a short sale typically leaves less of an impact on the home owners credit report.

    To qualify for a short sale a homeowner must be in an underwater home, have experienced economic hardship due to the following reasons: a recent job loss, death in the family, incarceration, job relocation or a medical issue that resulted in high medical bills.

    Home or property owners who want to get their short sale application approved should make sure that they do the following:

    • Write A Hardship Letter – The hardship letter is the borrower or homeowner’s best opportunity to state their case to the bank, this letter should tell the bank the following:

    1.How they got into their present situation

    2.What they’ve tried to do to fix it

    3.What will happen to them if they aren’t able to resolve their financial situation.

    • Include Financial Documents – Besides the hardship letter, every homeowner should make sure they have all the required financial documents that their bank will want like: two years-worth of income tax returns, W-2s, bank statements, and other financial documents


    Short sales typically take as little as 30 days 120 days or longer depending upon the homeowners mortgage and how many other home loans or second mortgages that they have on the property. In many cases a homeowner may be able to get their bank to pay them up to $35,000 to short sell their home and this financial incentive can help them to move into a new property and restart their life elsewhere.

    Every homeowner who is interested in either going through the short sale process should hire a qualified short sale specialist like myself because, short sale specialists know what the banks are looking for and can help the homeowner get their short sale approved faster and more accurately than the homeowner would if they were to go for the short sale process themselves.

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