Loan Modification and Short Sale

If your home is underwater and you can no longer afford to make your mortgage payments, a loan modification or short sale may be a solution for you. If you want to keep your home, a loan modification can help you reduce your monthly payments and, in some cases, even the amount of money you owe to the bank. If you want to sell your home, but your home is worth less than you owe, a short sale may help you sell the property without owing any more money to the bank. Because your situation is unique, we will work with you to determine which solution is best for you.

For more information or to schedule a consultation, please call or email us.

Loan Modification

Loan Modifications are where a lender agrees to adjusts the terms of the loan to make it affordable for a homeowner. One of the most common modifications from lenders is the Home Affordable Modification Program (HAMP Modification). In a HAMP Modification, lenders may adjust the interest rate and term of the mortgage to make the total monthly payment equal to a set percentage of a homeowner’s monthly income. Other modifications include “in-house” modifications and the terms of these modifications differ from lender to lender. In most modifications, past due balances and payments are incorporated into the modified loan amount and repaid over time or repaid at the end of the mortgage term.

Loan modifications can be very beneficial to homeowners, especially those with adjustable rate or interest only loans.

Short Sale

What is a Short Sale?
A Short Sale is where a lender agrees to allow a homeowner to sell the property for an amount less than the homeowner currently owes on the loan and prevents foreclosure. Through this transaction, our office is typically successful in negotiating deficiency waivers and reductions in order to avoid bankruptcy.

Why are they willing to take such a discount?
Banks do not like excess inventory of empty homes and non-performing loans on their books. In many cases, banks are willing to mitigate their losses through the short sale process to minimize the bank’s losses and to avoid the cost of foreclosure and the cost of selling a foreclosed home. Often, banks will use the proceeds of the sale to pay other existing mortgages and liens attached to the property.  In order to short sell your home, you need to locate a real estate agent who has experience working short sales.  Our firm can assist with any related legal needs.