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Short Sale Or Home Loan Modification, You Decide!


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What is a short sale? It is the sale of a home at the market value, not the principle balance of the contract. The process can be unbearable for the buyer and for the seller. If you are choose this process keep in mind that amount of work that it is going to take. With the lender losing money on a short sale, this isn't the process that they are willing to take on; most lenders won't even entertain the idea of this process.

When deciding on a short sale or a home loan modification, my first option would be the home loan modification. The process for a home loan modification is much easier and there is only one party involved in the process, the home owner. The mortgage lender has a specific department for this process, (loss mitigation department). When tackling the short sale process, the mortgage lender doesn't have a specific department; you will have to keep calling the lender and trying to get into contact with one specific person, not a department.

I have found that lenders are hesitating about attempting the process of short sales; mostly in part the lender is going to lose money in the process. I feel that lenders are thinking that going through the foreclosure process is more cost effective. If the short sale makes sense to the lender and there is a benefit to client and to the lender, the lender then will approve that process. If both parties aren't going to benefit from the short sale, the lender in most case will not approve it.

Loan modification, on the other hand, is an easier process and beneficial to the client and the lender. This process will take the burden off the client and the lender. It will assist the client by bringing the delinquent mortgage current, and will also assist the lender by keeping a good non-delinquent contact on their “books".

Comparing the time line on a loan modification to a short sale, you as a client are still ahead. Loan modifications can take up to 60 days for approval, where a short sale may take longer. Short sales have to actually be placed on the market and attract a perspective buyer, so the length of time is undetermined.

As you can see the process for a loan modification is much easier and isn't time involved like a short sale. Loan modifications are becoming an easier process due to the current economy; short sales are not becoming more attractive to lenders because of the current economy; lenders are more attracted to a loan modification because of the benefit to both of the parties, the client and the lender.

If you are in an economic hardship currently and wondering how you are going to get yourself back on track, let us extend a hand and assist you. We are determined to assist you in keeping your home. For further information on the process, please visit , or call 800-578-8595.


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