Modification , Short Sales, or Foreclosures, do they end up the same?
I know so many homeowners confident that they are in the midst of a modification and therefore don't have to worry about their homes. These poor people are misguided in their thinking. Many of these people have been foreclosed during a trial modification or in the middle of getting one.
A perfect example of this is a family in Long Beach who owned their home for over 17 years and were current on their modification and were foreclosed on anyway. They signed up for and got the modification because their store was not doing as well as it had in the past. Chase gave them the modification however, decided they weren't getting enough monthly from the payments they approved and decided to foreclose even though they never got behind.
This seems to be an everyday occurrence. Homeowners who are financially hurting are left no choice but to hire an attorney to stop the foreclosure, which for thousands they achieve a 30 day reprieve while they find other solutions.
Wells Fargo recently instituted a no extension policy for short sales even if they are in the process of a sale. I recently was one day short of closing when the bank decided not to give an extension. Luckily, with the proper escalation I was given an extra day and we closed. Bank are being so cautious that it takes approximately 45 days to get a loan and they give only 30 days for an approval. Do you think there is something wrong with that? Can't the banks figure it out?
The administration ran their election on helping the people and change for the better. Let me ask you how are they doing it without creating guidelines that are required, not voluntary, for the banks? It is no different than asking someone to work 12 hours or not work at all and receive the same money for doing nothing. Which would you choose?
How sad, that some who have qualified for a modification and paid on time should even be considered for a foreclosure, much less foreclosed on!