Monday, January 4, 2010

The Difference Between a Short Sale and a Loan Modification

I was asked this question on one of my sites recently so, I decided to make it a blog post:

A short sale is where the original lien holder/lender agrees to accept less than the principal amount owed on the remaining balance of the mortgage loan. For instance, let's say the remaining balance on the loan is $100,000. In a short sale situation, the lender may agree to accept an amount quite less than the remaining balance i.e. $65,000. In such cases the reason for a reduction in the principle amount owed is usually because of depreciating property values in the same area as the subject property/property in question.

A Loan Modification is actually what the term means. The Lien Holder/Lender agrees to re-amortize the remaining balance of the loan. In this case the arrears/unpaid mortgage payments are rolled into a new lump sum and mortgage payments are re-calculated.

I acually specialize in loan modifications an have seen huge success reducing monthly payments for a great number of clients. Most recently, I helped a client lower payments from $1800 to $1100. Contrary to many naysayers...current economic conditions are perfect for loan modifications. The current administration is giving money away like drunkards. As the saying goes, "an economic disaster is a terrible thing to waste". I recommend you contact me and obtain the Obama Modification.

Whether you voted for Obama or not, a 2% mortgage is a hell of thing to pass up. All that's needed to qualify is for you to prove that you can't afford you current mortgage. Wow! That's a no-brainer. Take if from the Brainionare, this is a deal you can't afford to miss!

I was talking to a close relative who informed me that he was upset. He stated that he voted for the man and didn't qualify for all the free money currently in circulation. I told him that times have changed. It used to be that if you were stable and made plenty of money where you didn't need bank money, banks chased you down the street trying to loan it to you. Now days the system is bending over backwards to give breaks to individuals who who can't afford the homes they are in.

With a loan modification one does not need to qualify based on credit. Credit isn't even considered. Also, a reduction in income is favorable to one's modification package. Even though each lender has different guidelines, ....i.e. some don't modify second loans, some will try and force borrowers into forbearance, some will not work with third party entities, some will extend higher trial periods. I have the complete list of banks and their various guidelines. If you are needing relief from a high mortgage, I can help. I've even stopped several foreclosures.

If you are still in a adjustable mortgage or if your home has depreciated in value you are automatically approved! Your lender won't tell you this! Why? Because modifications are handled by the loss mitigation department and if you are making you payments on time guess what?.....You're not a loss to them....lol

Feel free to contact me with questions
dick.g9@gmail.com

1 comment:

joycelewis412 said...

Short sales previously held a waiting period of 2 years. Now, the waiting period is 2 years with a 20% down payment or 4 years with a 10% down payment.
Check if you qualify for a mortgage. Try http:www.whywaitbuytoday.com