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Short Sales and Loan Modifications Smart Real Estate Show
Short Sales and Loan Modification information for Homeowners.
The Smart Real Estate Show pulls the curtain back and lets homeowners know the truth about available programs in place to help homeowners avoid foreclosure.
Now is the best time for a homeowner in distress to dump their debt and get a fresh start. Banks have programs in place to help homeowners avoid foreclosure and complete a short sale. Even better, most banks are paying homeowners to sell their property as a short sale. Why are the banks doing this? Because, the bank also gets to dump debt and show a profit. This is a win-win situation for homeowners and lenders.
If you're struggling to make your mortgage payments you have two fantastic options:
1. Apply for a Loan Modification
2. Complete a Short Sale
Loan Modifications
A loan modification is when the lender adjust your monthly payments to be more affordable. This process takes several months, and only 6% of homeowners across the country will actually qualify for a complete Loan Modification.
The first step in a Loan Modification is applying. During the application process you may be offered a Trial Loan Modification. This Trial Period is for 90 days and the payments you make to the lender are simply for processing. None of the money you pay during the trial period will be applied to your mortgage or home loan.
If you Qualify
After the 90 Day Trial Period, if you qualify for a loan modification, your lender will send you a new monthly payment amount. The payments you missed during the Trial Period will be added to the end of your loan.
Remember only 6% of homeowners actually qualify for a true loan modification, and almost 0% will see any principle reduction. As a mater of fact, if you're paying Interest Only payments before the Loan Modification, you will be surprised to see your payment increase. As when a bank modifies your loan they will require full Principle, Interest, Taxes, and Insurance payments in your new monthly payment.
Short Sales
A Short Sale is Debt Forgiveness, and release of your debt and lien on the property. Basically, you're asking your lender to understand that you're not able to make the payments, and you would like to sell the asset or property for current value and both parties get to cut their losses.
This is your opportunity as a homeowner to start all over, with a clean slate. Remember, a short sale should show on your credit as Paid As Agreed, which is much better than Foreclosure. Also keep in mind that if you choose to let the lender foreclose and take your property, you will forever have to explain this foreclosure as every Home Loan Application ask if You have EVER been foreclosed upon.
Listen to the Smart Real Estate Show for news and information regarding all things Real Estate. Feel free to contact us with any questions at [email protected]
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By Troy SageShort Sales and Loan Modification information for Homeowners.
The Smart Real Estate Show pulls the curtain back and lets homeowners know the truth about available programs in place to help homeowners avoid foreclosure.
Now is the best time for a homeowner in distress to dump their debt and get a fresh start. Banks have programs in place to help homeowners avoid foreclosure and complete a short sale. Even better, most banks are paying homeowners to sell their property as a short sale. Why are the banks doing this? Because, the bank also gets to dump debt and show a profit. This is a win-win situation for homeowners and lenders.
If you're struggling to make your mortgage payments you have two fantastic options:
1. Apply for a Loan Modification
2. Complete a Short Sale
Loan Modifications
A loan modification is when the lender adjust your monthly payments to be more affordable. This process takes several months, and only 6% of homeowners across the country will actually qualify for a complete Loan Modification.
The first step in a Loan Modification is applying. During the application process you may be offered a Trial Loan Modification. This Trial Period is for 90 days and the payments you make to the lender are simply for processing. None of the money you pay during the trial period will be applied to your mortgage or home loan.
If you Qualify
After the 90 Day Trial Period, if you qualify for a loan modification, your lender will send you a new monthly payment amount. The payments you missed during the Trial Period will be added to the end of your loan.
Remember only 6% of homeowners actually qualify for a true loan modification, and almost 0% will see any principle reduction. As a mater of fact, if you're paying Interest Only payments before the Loan Modification, you will be surprised to see your payment increase. As when a bank modifies your loan they will require full Principle, Interest, Taxes, and Insurance payments in your new monthly payment.
Short Sales
A Short Sale is Debt Forgiveness, and release of your debt and lien on the property. Basically, you're asking your lender to understand that you're not able to make the payments, and you would like to sell the asset or property for current value and both parties get to cut their losses.
This is your opportunity as a homeowner to start all over, with a clean slate. Remember, a short sale should show on your credit as Paid As Agreed, which is much better than Foreclosure. Also keep in mind that if you choose to let the lender foreclose and take your property, you will forever have to explain this foreclosure as every Home Loan Application ask if You have EVER been foreclosed upon.
Listen to the Smart Real Estate Show for news and information regarding all things Real Estate. Feel free to contact us with any questions at [email protected]