Are you working on a loan modification with your mortgage company?

March 6, 2012 - PRLog -- Atlanta - March 6, 2012 - I talk with borrowers each day who have discovered that their home is worth $30,000 or even $70,000 less than what they owe on their loan.  A job loss, divorce or injury on the job caused them to become delinquent on their loan.  

When they contacted their lender they were told they could apply for a loan modification … but only if they were at least 60 days late on their payments.  These borrowers who quit paying in order to start the loan modification process and those borrowers who lost a job or had some financial misfortune and can’t pay, are now faced with foreclosure, even while the lender says they are “working” on a loan modification.

If this sounds familiar, then you may want to take a second look at the benefits of a SHORT SALE:

   *Continue to stay in the property for free as long as possible because the foreclosure sale can be postponed.

   *A short sale settlement with your lender means you may not have to worry if the lender will sue you for their loss if they make a deficiency bid at the foreclosure sale.

   *The lender often forgives the mortgage debt that can’t be paid via the short sale.  If  you are an owner occupant and the loan that is in default was used to acquire or improve the property, there is no tax due to the IRS on the forgiven debt due to a tax moratorium provided under Program HR 3648.

*Borrowers who complete a short sale can buy another home in as little as 2 years according to Fannie May and Freddie Mac guidelines.  A Foreclosure or Bankruptcy keeps you on the sidelines for 5 to 7 years.

*Avoid the negative amortization that happens when you continue to be buried under a bad loan.  The loan modification is temporary.  Your lender will make you pay back any portion of the monthly payments that were deferred which means you will likely never be able to re-finance because the loan value will exceed the value of the property for years and years.  71% of all loan modifications fail in the first year.

Why would anyone willingly stay trapped in an upside-down property with a bad loan?

CALL OR E-MAIL ME NOW FOR GUARANTEED HELP!!!  678-799-4663  or email at   fred.yancy@crye.leike.com

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Program HR 3648 is a nationwide initiative whose mission is to:
1.Help homeowners receive the mortgage debt forgiveness this new law encourages.
2.Rescue as many homeowners from public foreclosure as possible.