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Bellevue WA – Here is another common loan modification mistake that many homeowners make. They accept a very short term payment agreement that is not a loan modification.
They could have gotten a real modification, but settled for whatever the lender recommended to them. They settled for what is called forbearance. Here’s how it works.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
A forbearance does not reduce your payments. It doesn’t reduce your back payments, or reduces them very little. The lender just allows you to catch up on all the debt over a set time period.
You start paying your normal payments again. In addition, you also have to pay extra every month to catch up the back payments.
Many homeowners are so desperate to keep their home that they agree to this. It is the first thing recommended by their lender and they just accept it.
In most cases, the homeowner could have received a real loan modification with genuine relief. In some cases this is good for the homeowner.
They didn’t experience a big drop in income and can afford the payment. But, if their income was reduced, then they are setting themselves up for failure. Why?
Many lenders have a policy that they won’t negotiate a loan modification with someone who has already defaulted on a forbearance or loan modification.
No, they won’t admit this in public. And it usually isn’t a written policy. They just simply put people asking for a new modification on the back burner.
The bottom line: Don’t accept a forbearance unless you can afford the payments. If you do accept it and later default, then you are putting yourself at a much higher risk of losing your home.
We offer a loan modification guide to consumers. Here is what we cover in the Stop Foreclosure Institute's Loan Modification Insider Secrets Guide.
* An easy to understand, Step By Step Guidebook.
* How to write a Hardship Letter that gets your loan modification approved.
* Three big loan modification mistakes and how to avoid them.
* Loan Modification from the lenders point of view.
* How the Making Home Affordable Program can help you.
* What not to do so you don't risk being carted off to jail.
* How to calculate your budget properly to increase your chance of success.
To request this kit, please click here to request a copy.
I can help you short sale your property and get back on your feet. Send me an e-mail at paulandc@yahoo.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (206) 261-7355
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Bellevue loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Paul Nelson.
Paul is a Real Estate Agent at Force Realty. Bellevue Short Sales Realtor:
Phone: (206) 261-7355. paulandc@yahoo.com.
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