Recently - I went on a listing appointment and met a couple who tried unsuccessfully to do a loan modification with the bank.
They had purchased a condo for $255,000 in 2006 and now it is worth about $90,000 in today's market. Condos have been hit harder than single family homes in South Florida.
The couple called the bank with the help of an attorney - received the "temporary" loan modification and "probationary period" for three months. Three months passed and they made the payments on time and thought the bank would give them the "permanent" loan modification which was promised if they passed the probationary period.
Well - they like thousands of other loan modifications were denied. Banks are not approving the "permanent" loan modifications. I know of a bank who approved of 18,000 probationary loan modifications but only approved 18 permanent loan modifications.
EIGHTEEN OUT OF EIGHTEEN THOUSAND!
How can this be working? How is that fair to promise the customer of a permanent loan modification if they pass the three month probationary period only to be denied and told they should do a short sale transaction.
The bank told the customer to call me and list the property for sale and they will approve a short sale with a satisfactory market value contract.
Seems to me the banks are more willing to approve short sales than actually approve a "permanent" loan modification even after some have paid attorney's thousands of dollars only to be approved for three months and after be told to do a short sale?
If you need professional consultation in short sales and loan modification call Nicholas Goglucci @ 954-650-7800