Foreclosure options are few and far between and you could be considering the differences between a loan modification vs short sale to help. Both of these options are very different and there are advantages of starting one or the other quickly. You know that you have a very limited amount of time when you are facing a foreclosure. If you are like most homeowners, you have already tried a few options that have failed. What you are searching for is validation that a program that you are interested in will work for you. The success rate of approval for foreclosure programs is always dependent on the type of assistance used and how fast it is integrated to stop foreclosure. If you are underwater with your mortgage, you have little time to make something happen.
Loan Modification vs Short Sale Comparison
A loan modification is a process that a lender can provide to you to change the original terms of your mortgage. The two most common modifications that are made are an interest reduction or change and an extension of the term of the loan. The amount of interest payable can be reduced as a way to help lower your monthly payments. The interest that has not been paid could be added to the principal balance to help you pay off your mortgage much easier. The negative aspects of a loan modification are that they are very hard to receive. It takes a negotiation process and many lenders are not willing to negotiate or take too long to grant approval.
A short sale is one way to get out from under a past due mortgage without the fear of debt. This is a specialized sale that is conducted with the approval of a bank or mortgage lender. A sale of your home under this method will not bring the traditional debt that a foreclosure will bring. The outstanding debt can be forgiven after your home is sold thereby freeing up your credit score. A short sale can help you qualify for a new mortgage in two years or less compared to 7 years or more with a standard foreclosure. Your bank or lender could also provide a cash incentive if you select a short sale compared with a loan modification. A short sale is often started after a loan modification has been denied, but the best results come when a you select it as your primary option to avoid foreclosure.
“Loan Modification vs Short Sale”
Avoid Foreclosure has loan modification and short sale experts that work hard for you to provide the foreclosure help that is right for your family. We know the struggles of denial and dealing with lenders and banks that are not compassionate about your unfortunate circumstances. We are here to help you if you let us. Call us toll free at 1-800-589-4106. You can do the right thing for your family now that you know the differences between loan modification vs short sale to stop foreclosure.