Loan Modifications in Southern Oregon, Medford and Surrounding Areas

Real Estate Agent with Short Sale Specialists

Why is my Loan Modification Taking So Long: It is unclear how long it is supposed to take lenders to modify loans (or deny modifications) but many home owners are being forced to wait for months without any word except that their lender needs more information. In many cases, homeowners have been waiting 7 to 9 months and are being told that their file is still in processing.             Getting anyone from the banking industry to give you a straight answer to why it takes so long is pretty much impossible. Homeowners are being told that "...there are just so many loans being modified and that it just takes time." Others are being told nothing. However, if volume was the cause of the delays it would stand to reason that everyone should experience the same delays...and that isn't the case.             When speaking with homeowners who successfully modified their loans we found that their process was no more than 60 to 90 days. So why are people still waiting months longer with still no answers?              According to recent articles in Bloomburg, NY Times and other publications, over 50% of loans being modified end up back in foreclosure within 12 months. So, in the banks mind, they are simply delaying the evitable and keeping negative assets on their books longer. If they were to take action now and foreclose, they could get the property sold, get what funds they are going to get and re-loan the money. After all that is how the banks make money...making loans.             Modifying loans also means dropping many borrowers rates to as low as 2% especially those borrowers seeking assistance through the Home Affordability Modification Program (HAMP). The Obama administrations program which was suppose to help 3 Million homeowners has only helped about 1/6 of that according to a recent article in the NY Times. But that's beside the point. If the banks were to foreclose, resale the property and net only half of what was owed they could re-loan the money at 5%...making the bank a lot more money.              Now...I don't know of any lender that would ever admit to this as it isn't good PR. They don't want their borrowers to know that even though their tax money went to bail the bank isn't a good money making strategy to provide loan modifications             This is why so many lenders have been offering huge incentives to troubled borrowers to sell their home through a Real Estate Short Sale. Banks have offered incentives as high as $5,000 to borrowers who successfully sell their homethrougha Short Sale. On top of this, the borrower's credit is saved from the devastating affect that foreclosure has on their record and is able to re-purchase a home much sooner. To get more information on the short sale process, go to to get the free book "Home Owner's Guide to Understanding Real Estate Short Sales.             The government has also created the Home Affordability Foreclosure Alternative (HAFA) program. The program stipulates that if the borrower qualifies, their lender must give them up to $3,000 after successfully completing a short sale.             Lenders have finally realized that Short Sales are a win - win situation for them and the borrower and have stepped up their games on getting short sales through the system much faster. Borrowers who use Short Sale Specialists have seen Short Sales close in as little as 45 days. Experienced Short Sale experts also have found that the majority of the short sale offers get approved.             What Most home owners fail to realize that even if the bank modifies their payment, they are still 10's even 100's of thousands of dollars upside down in their home. Many homeowners will have to wait 15 to 20 years just break even. Since the average the homeowner moves every 7 years, many homeowners who modify their loan will have to short sale their home anyway and start rebuilding their credit when others have already done so. If you are waiting for a loan modification...get the facts before you wait any longer.


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Oregon Jackson County Medford
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southern oregon
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Jamie Batte

Short Sale Specialist
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