Modifying your mortgage? Perhaps you should modify your expectations!

Modifying your mortgage? Perhaps you should modify your expectations!

If you live in the Bakersfield area, and you've defaulted on your mortgage... chances are that Brenda and I know about it! Don't let that scare you, we're here to help!

There is a theme amongst struggling homeowners, when approached regarding their mortgage situation. A knee-jerk response that people seem to be responding with. "I'm modifying my mortgage, thank you" they say (not everyone says thank you). What seems to baffle me is that the homeowner will make this statement with full confidence that this is the solution to all of their problems, that it will go through, that foreclosure is not even a threat, and that there is no need to even consider a short sale. Unfortunately, when you review the statistics of how many people apply for a modification vs. how many people actually receive a modification, you begin to see how little your chances actually are for getting a realistic modification. How about looking at the number of people that apply for modifications and wind up in a foreclosure situation.

The most common scenario that we've witnessed time and time again, is the one where Mr. or Mrs. Homeowner apply for a modification, they are asked for documentation, they are strung along for weeks and weeks (meanwhile the clock is ticking, and foreclosure is nearing). At this point one of two things usually happens. Mr. or Mrs. Homeowner either receive the news that they do not qualify for a loan modification, several days before foreclosure leaving them with no option but to accept the foreclosure. Often times, Mr. or Mrs. Homeowner will not hear anything at all from the bank, time will run out, and the home will proceed to the sales, both scenarios resulting in the same situation. 

I am not saying that you should not pursue a loan modification. If you are struggling to make your mortgage payment, I completely understand wanting to do absolutely everything you can to stay in your home. However, I am simply trying to make people aware of the statistics. Do not allow your bank to drag you along, all the while you think you're "getting a loan modification" when in fact they're keeping you from stopping the foreclosure. If you're about 30-45 days from your foreclosure date, it's time to talk to an agent regarding a short sale. Short sales are a time consuming process, that only become harder the closer you get to foreclosure. Not to mention, you will probably stay in your home longer with the short sale process, than you will with the loan modification process. 

If you, or someone you know, are struggling to make your mortgage payment, don't wait, give us a call today. You can contact us -here-.

For more information regarding Short Sales, please click here.

Brendan and Brenda Winans are full time professional Realtors®. To search through thousands of California listings, please click the link/logo below.