Loan Modifications, Few and Far Between

If you are a struggling home owner, chances are you have probably contacted your mortgage company in regards to a loan modification. Let me guess, they told you they needed a hardship letter, pay stubs, bank statements etc...Then you didn't hear anything and you called them for an update only to find out they wanted more paperwork, so you gave it to them. Weeks go by and still no answers from the bank, meanwhile your bills are mounting as you are trying to do the right thing and make good on your loan. This is a very common theme and a sad one at that. I don't like to be a pessimist, but loan modifications are few and far between. If your loan is with a smaller, local entity, you may have a better chance of getting a modification or forbearance. If your loan is through one of the bigger guys, expect the run-around. Not to say that it hasn't happened, but the odds are not strong. I have had clients tell me the bank told them they made too much and when they reapplied, they told them they made too little. I have had clients tell me they were approved for a modification that would reduce their monthly payements by a whole fifteen dollars. If you are tired of the games, then a short sale will be taken much more seriously by your bank than a modification. Nobody wants to lose their home and its only natural to try and keep it, but I know how relentless the banks can be with the phone calls and the letters; it can be very frustrating. One thing to keep in mind when pursuing a short sale is to try and keep other liens on your property such as HOA dues and taxes up to date. The banks are much more willing to negotiate a short sale when there are no other liens on the property. If the bank forecloses, they are only required to pay up to six months in backed HOA dues where with a short sale they must pay all of it. If you are fed up and ready to sell your property, talk to a realtor who is experienced in short sales. You should never have to pay someone for this service and neither should the buyer, although some agents hire people to "negotiate" your short sale and then charge the buyer a fee for it. Hire an agent who works their own short sales and stop the bleeding today.