CORDELIA HOMES--My bank says I don't qualify for a permanent modification. What now?
More and more, I am getting calls like this from clients. These clients have entered into a temporary loan modification program with their lenders under the Making Homes Affordable Program (HAMP). They made their three months worth of trial payments at a payment they could afford. They thought this would be permanent. Now they are being told that they do qualify, but the payment will be much higher. For example, I have a client whose payment prior to modification was $4800. For her temporary modification, it was $3500. After the trial period, the bank increased it to $4300. Due to a recent divorce and lack of income, she cannot make that amount.
When she spoke with her bank, they told her that she did not qualify under the HAFA program either and her only option was to short sale. She was very upset by this at first, because her home means so much to her and her son. To qualify for the loan mod, she had missed nine months of payments. So under the FHA guidelines, she cannot re-purchase for two years after her short sale.
We spoke a lot about her options. After some soul searching, she decided that she would short sale, become a renter for two years and then look to buy again. It wasn't easy, it's not the ideal outcome she would have chosen, but in the long run she decided it was the best for her. She has now found some peace and a great home that is close to her son's school where the rent is affordable for her. She will begin saving for the down payment for her new home and in two years will buy again. In the meantime, she has saved herself from having a foreclosure on her credit report and the lender released her from all future liens and judgments.
If you find yourself in a similar situation and you bank has told you that short sale is your only option, please contact a real estate professional to help you.
For more information on Cordelia real estate, please contact via phone, email or text. To see what's for sale throughout the Cordelia, please visit my website at: www.soldbynicole.com and click on search the MLS. If you want to know how much your current home is worth, click on CMA and I will happily provide you with a complimentary, no obligation, "Current Market Analysis" of your Cordelia home. I also write a blog about market statistics for most of the bay area markets. Click here to view my blog: http://activerain.com/blogs/nicolemonary