Loan Modification Secrets

For some homeowners in danger of losing their home to foreclosure, there has been a lot of incomplete information out there. For example, many believe that a loan modification is a “cure-all” for distressed homeowners. While it is true that it can be a good option for some people, it isn’t always the best solution.

There are many more options available to homeowners.

I have put together a list of 5 questions that anyone who is in danger of losing their home should ask before they make a decision.

Has the bank already begun the foreclosure process?

If the bank has already given notice of default, then the clock is ticking. In the past couple of years, there have been cases where foreclosures have taken as long as 2 years before homeowners lose their homes, but those days are gone. Today, foreclosure happens much more quickly, which means that homeowners have less time to educate themselves on their options. A loan modification might be a solution, but there are many other options to consider.

How much other debt do I have?

For some homeowners, a brief, unexpected issue may have put them in a financial bind that is threatening their home. For most homeowners, however, their financial issues are not limited to just their mortgage. Many of these people have found themselves in quite a lot of debt. If you have a high debt-to-income ratio, there is a much smaller chance that a bank will be willing to grant a loan modification because of the chance of redefault. In those cases, the bank may determine that a foreclosure makes more financial sense for their bottom line.

Is the issue that is causing my hardship temporary?

If a homeowner unexpectedly loses a job or finds that a temporary health issue has created the hardship that now threatens their home, but they know that the situation will resolve itself if they can simply buy themselves a bit more time, then a loan modification could be a very good solution. However, if the problems are more widespread and have no real end in sight, then a loan modification will be unlikely to help in the long term because of the high likelihood of redefault.

Is it mandatory that I stay in my current home?

The number one reason why a loan modification is such an attractive option is that it allows the homeowner to stay in their home. By exploring other options, like a selling, renting the home, refinancing or a short sale, homeowners open themselves up to the possibility that there might be a better solution for their situation than a loan mod.

Have I considered other options?

There are lots of other options for homeowners in this situation that will allow them to walk away from an unmanageable mortgage on their own terms. A short sale, for example, allows homeowners to settle with the bank with dignity and with a minimal impact on their credit scores. In many cases, the homeowner can be back on their feet in anywhere from 6-18 months.

Download a copy of my free report entitled “Loan Modification Secrets” at www.ShortSaleLasVegasToday.com and then contact me for a free, confidential consultation.

Shanta Patton- Patton Team, - Short Sale Specialist 702-302-2760, www.SellingLasVegasToday.com , www.ShortSaleLasVegasToday.com , Shanta@SellingLasVegasToday.com, Wynn Realty Group