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Short Sale vs Loan Modification

By
Real Estate Agent with Keller Williams-Fox Valley Realty

Seems like I just keep coming across folks who are really confused about the Loan Modification process and the Short Sale process.  I get that call of desperation from a confused homeowner who is in financial turmoil and in the midst of a loan modification that seems to be going nowhere.  The simple question to ask is "Do you want to stay in the home, if you can afford it?"  Spoke to a caller today who convincingly answered 'NO' to the question.  Then a loan mod is completely the wrong solution to the situation.  Instead the caller needed to get out of the home altogether and move on with life.

The difference is a loan modification is designed to help people who have suffer a temporary setback, stay in their current home.  The short sale process is designed to liquidate a property that is upside down.  See the difference?

Alot of confusion out there and many could really benefit from knowing the proper solution for them.  Unfortuanatley, there does not seem to be many places for these people to get good & credible information.