Know These Shocking Truths BEFORE You Pursue a Loan Mod! [part 3]

December 3, 2010 at 8:26 am , by Russell Bradchulis

Homeowners in the middle of getting a loan mod–or wanting to start the loan mod process–may find themselves facing an unexpected auction. Some banks are not stopping the foreclosure process while sellers are scurrying around making their trial payments and faxing in documents (which the banks conveniently never receive). Meanwhile, the foreclosure time bomb is still ticking, which means that while the sellers THINK they are getting a loan mod, they are actually getting closer and closer to an AUCTION, and they don’t even know it!  Then, about two to three weeks before the auction, the bank informs them that their loan mod did not pan out and their auction date is around the corner. No loan mod, no help, no alternative. That seller is going to foreclosure unless they do a short sale.

Much of what we hear on the news is that loan mods are the way to go for many homeowners. And for some they have been a godsend. But we are finding that the loan mod scheme really makes a bad situation worse for the homeowner, who all the while is getting their hopes built up.

For the majority of the calls into our office, a short sale is the best option for them. They are able to get out from under the debt, move on with the rest of their life, and may even be able to stay in the home through the process. We work with our sellers individually to find the best solution for their problems, but most times the short sale is their best option.

So before you pursue a loan mod, make sure you know what can ACTUALLY happen when you sign on the dotted line, hoping for a miracle, but more likely bringing on a curse.

Read Part 1

Read Part 2


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2 Comments so far

by Dorothy

On December 2, 2012 at 3:51 pm

How can you do a short sale in a couple of weeks? Doesn’t it take an average of six months?

by Russell Bradchulis

On December 3, 2012 at 8:16 am

Short sales do take on average six months to complete. In some cases, however, it is possible to have a pre-approved short sale, which can be substantially faster than traditional short sales. Even then, however, it is unlikely to get one done in a couple weeks. It is possible, though, to have a short sale come together, get approved, and then substitute a buyer if the original buyer backs out. In that case, a short sale would get done in a couple weeks. But that’s pretty uncommon.

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