Loan Modification

Several contingencies are factored into the decision making process of whether or not to allow the homeowner to sell the property in a short sale. Current market conditions are usually the largest factor in the decision making process.

When comparable homes in the area are selling for much more than the proposed short sale price, it makes more sense for the bank to foreclose on the home and recoup more of their initial investment.

If comparable homes in the area are selling for less than the balance owed, a short sale becomes more appealing from the banks perspective. Foreclosures can be costly and time consuming for the investor. Proceedings can last several months to several years depending on the location of the property.

A short sale is usually only an option if a foreclosure is inevitable. The advantage of a short sale for the homeowner is that it is not recorded as a foreclosure and does not report as a foreclosure on a credit report.

If you are considering a short sale instead of letting your home go into foreclosure, we recommend opting for a loan modification.. A modification can keep you in your home and make your payments more affordable. Call or apply today to find out if you qualify.