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Are you thinking about doing a loan modification to keep from losing your home? WHY?

By
Real Estate Agent with eXp Realty LLC 200311024

WHY? Simple question that can save you lot of time and heartache when it comes to doing a loan modification and trying to keep your home. Many people are going through hard times right now and many of these people want to keep their homes and I’m betting if you are reading this you are one of them.

But, my question to you is “What was the reason you need to do the loan modification?” If you saying because your payments are too high oris that because you are getting paid less or could it be you have a spouse who lost a job? Whatever the answer you need to decide what is right for you.

Are you thinking of doing a loan modification in Oregon

From my experience if you are modifying your loan so you can save money because of a job loss or other financial difficulties that haven’t been resolved. I have seen a huge failure rate in this type of loan modification. But, if you have gotten a job or have returned to work and are just looking to add the payments to the end of the loan and can now afford the payments like before, I’ve only seen one of these types of loan modifications fail.

So, if you can now afford the home like you could a few months back, then I say go for it and try to get a loan modification. But, ifyou are in a situation that if you were brought current on your payments and you still can’t afford the home, then I suggest you re-think getting a loan modification and consider selling your home and getting something with a considerably lower payment.

Comments (6)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

TOod, good sound advice....I am still amazed that many sellers don't know this is an option...

Jun 17, 2010 02:52 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Todd - Sage advice.  Loan Modifications can be a nice tool if it fits into a thought out & planned long-term committment to keep the house folks have made home.  However, if it something that is nothing more than prolonging what is no longer affordable ... it's probably best to seek other alternatives.

Jun 17, 2010 03:01 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

One of the first questions i ask potential sellers is if they are current on their mortgage ...and we work from there.  I've found that many banks are just continuing to drag their feet on loan modifications that should happen anyway...keep waiting for a hallelujah!

Jun 17, 2010 04:47 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I too, have seen a high failure rate in loan modification. The shadow inventory keeps building behind the dam...

Jun 17, 2010 05:11 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

One big piece of advice on loan modifications...even when the lender says everything is fine, it might not be.  You should be checking with the foreclosure department too!  I have had a client recently who was making payments on her modification, BoA was sending the payments back to her via Western Union and proceeded with a foreclosure with no further notice to her.

Jun 17, 2010 05:24 AM
Curt Baumgarth
Mesa, AZ
inactive

Good points Todd.  Here in Arizona folks seeking a loan modification should beware of companies that seek upfront fees to negotiate the terms of the loan mod for you.  One site I like http://www.thequeenofhud.com/ has an "Avoid Foreclosure Guide" that discusses how to keep your Arizona home.  These things vary from state to state, so if you are not in Arizona find a local source.  Of course you should try to modify your loan before simply giving up your home or selling it in a short sale situation, but be warned that the bank probably won't work with you the first time. It takes perseverance and persistence.  I agree with Todd, however, if you just can't afford your payment sell your home and downsize.  Downsize before it's too late.  What you should not attempt to do, however is short sale your home, so that you can purchase a more affordable one.  In Arizona, you could get yourself into some legal troubles doing this.  

Oct 17, 2010 01:56 PM