There are Often Better Options than Loan Modification

Sept. 6, 2012 - PRLog -- For homeowners facing foreclosure, there are a lot of powerful emotions at play. A loan modification, changing the original terms of the loan, can represent an attractive option because it allows the homeowner to stay in their home.

There are some truths about loan mods, however, that many homeowners don’t know. “According to studies done by the Department of Housing and Urban Development,” says Donna Tashjian with Keller Williams Realty Grand Rapids East “over half of the people who get a loan modification end up re-defaulting within 6 months.” This coupled with the increasing difficulty in obtaining a loan mod means that they are often not an ideal solution for everyone.

“In reality, a loan modification works for people in a very specific set of circumstances. They are people who are normally financially stable, but that have found themselves with a temporary problem that is threatening their home,” said Tashjian.  Job loss or an unexpected illness are the most common temporary issues that arise. For homeowners who know that their situation will be fixed in the near future, a loan modification makes sense.

For most people in danger of losing their home, however, these circumstances don’t apply. Their financial issues are often larger and beyond the scope of what a bank will consider for a loan modification. For those homeowners, it is important that they are educated on their options.

A Certified Distressed Property Expert (CDPE), Donna Tashjian has intimate knowledge about the many foreclosure alternatives that are available. A Certified Distressed Property Expert (CDPE) is knowledgeable of the entire landscape of foreclosure