Short Sale vs. Foreclosure – What Do You Choose?

March 29th, 2010

Short Sale Vs. Foreclosure: How Do They Compare?

Short sale vs. foreclosure is a decision that many have to weigh. Over the last few years, millions of Americans have experienced difficulty paying their mortgages and staying on top of their monthly expenses. This combined with falling housing prices and rising interest rates lead to homeowners owing more than their homes are actually worth. It is a very challenging situation and the parties involved must decide between two options: short sale vs foreclosure.

Foreclosure is a legal proceeding which allows the bank to take back the title of the mortgage from the homeowners and resell it in order to recoup for losses. In this case, the homeowners have no choice but to simply walk away from their home. They gain nothing in a foreclosure. The money they put into their home is lost and their credit score is negatively affected.

A short sale is a bank-issued discount on the balance of the mortgage due to hardship on the part of the homeowner. The homeowner then must sell the property at this discounted price and turn over proceeds to the bank. In this case, the bank takes less of a financial hit, and the homeowner’s credit history is not affected too adversely.

So how do you decide between a short sale vs. foreclosure?

Foreclosure is probably the easiest option, because the borrower simply relinquishes all control and ownership of the home, turns it over to the bank, and walks away. With a short sale, the borrower is still responsible for selling the home. This could be considered either a good or a bad thing. Most homeowners like retaining some control and knowing who will buy their home. They are also able to avoid the stigma of foreclosure.

However, they still do not benefit monetarily or otherwise from a short sale. They are still taking a loss.

One major deciding factor in short sale vs. foreclosure is the borrower’s credit history and ability to buy a new home. With foreclosure, their FICO score can drop between 200-400 points, a devastating blow that can take years to repair. They also must wait between five and seven years before they can be considered for another home loan.

With a short sale, homeowners do not experience a drop in their credit score beyond that which occurs from being behind on their mortgage payments. They also may be eligible to buy a new home within a couple of years, in some cases immediately. Overall, a short sale is not nearly as harsh on a homeowner as is a foreclosure.

Any homeowners unable to keep up with their mortgage owe it to themselves to become educated on their options concerning short sale vs. foreclosure. This is not an easy matter to handle, but with knowledge comes power.

We can help get your a loan modification, stop foreclosure and negotiate a short sale with your lender. Please visit the loan modification company for more info!

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How To Stop Foreclosure – Tips To Save Your Home

March 29th, 2010

How To Stop Foreclosure: Tips On Saving Your Home

Foreclosure occurs when borrowers default on their mortgage payments and wind up owing more than their home is worth. The bank relinquishes ownership of the home and the borrower has no choice but to walk away and accept a huge loss. Not only does foreclosure affect their financial security and credit score, but it also affects the security and stability of their families. Often, when foreclosure occurs, families are left out in the cold.

It is the absolute worst case scenario, and homeowners should take every possible measure to prevent it from happening to them. But can homeowners learn how to stop foreclosure? These following methods may help if you find yourself in dire straits.

One method is by writing a hardship letter to send to your bank. Careful thought should be put into this letter, as it must adequately explain your hardships and the reasons why you are behind in your payments. In the letter you can ask for extra time to catch up on your mortgage payments. If your hardship letter is written correctly, the bank may grant your request. This method can also be used to initiate a short sale rather than a foreclosure. You can write your hardship letter yourself or hire a legal professional to do it for you.

Have you heard the term “produce the note”? You may be wondering how to stop foreclosure using this technique. Basically, it involves demanding that the financial institution produces the original mortgage note that you signed when your bought your home. It comes as a shock to most people just how many banks lose or throw away this important document. Over time, mortgages are sold and resold, cut up, and made into bonds. After a while, the identity of the true owner becomes unclear.

If the banks cannot provide proof that you are the original owner of the home, the foreclosure proceedings cannot continue until the note is provided. This can delay the foreclosure for months. In some cases, foreclosures have been entirely prevented by employing this method.

Another important method to learn is how to stop foreclosure using loan modification programs. Depending on your situation and level of hardship, you may be able to defer payments or extend your home loan, which may prevent you from having to go through foreclosure proceedings.

The best thing to do if you are looking for ideas on how to stop foreclosure is to talk to a trusted professional who can sit down with you, look over your case, and discuss your options. Foreclosure and real estate law is a complicated matter that requires the knowledge of a qualified expert. Don’t resign yourself to your situation: there are solutions available if you are willing to look for them.

We can help you stop foreclosure and we guarantee it. Visit the loan modification company and fill out our form to contact us.

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Bank of America Loan Modification

March 29th, 2010

Bank of America Loan Modification

Bank of America is one of the largest mortgage lending companies in the country and currently receives the highest number of loan modification requests. If you signed a mortgage contract with Countrywide, you are now dealing with Bank of America as well, as it recently bought out the company. Bank of America contains notoriously strict application guidelines which many homeowners find difficult to deal with. Many applications are denied. However, there are the lucky few that manage to get accepted.

A Bank of America loan modification, if you are accepted, may lower your monthly interest rates, give you time to catch up on deliquent payments, and possibly help you negotiate out of a subprime loan into a fixed rate loan. It’s also possible to enter a forbearance agreement which grants the borrower three to six months of leeway in which they don’t have to pay their mortgage payment. At the end of the period, they resume their current mortgage payments and are no longer deliquent.

Bank of America also takes part in Obama’s new homeowner bailout loan modification program. With this program, you can refinance your loan so that the monthly payment does not exceed 31% of your income. You can also get cash incentives every year that you remain current with your mortgage. It’s a great plan that, while still in its infancy, is allowing many homeowners to get back on track with their mortgages. Experts predict that many foreclosures will be prevented thanks to this government program.

If you choose a Bank of America loan modification, you must be prepared. You must have all of your financial documentation in order and ready for review. You must be able to prove that you are in financial need of a loan modification, and that you can afford the new terms of your mortgage payment once the modification has taken place. If you do not have everything compiled accurately and you cannot provide a compelling argument, chances are great that your application will be denied even if you really are in dire straits financially.

This is where a loan modification company comes in. It can be difficult for homeowners to make a compelling case to Bank of America all on their own. The application process is difficult and confusing, and the success rate can be shaky. A loan modification company can help you qualify for these programs by doing all of the research and paperwork for you. A professional will be standing by to help you with every step of the process. So if you’re interested in a Bank of America loan modification, consider seeking the expertise of knowledgeable professionals at the loan modification company. It’s the best step you can take towards saving your home and your financial future!

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Loan Modification News for 2010

March 29th, 2010

Loan Modification News in 2010: What To Expect

In March 2009, President Obama launched his MHA program: Make Home Affordable modification plan. The purpose of this plan is to help distressed homeowners manage their monthly mortgage payments and avoid facing foreclosure. Since then, hundreds of thousands of homeowners have been able to successfully apply loan modifications to their mortgage loans. However, this only serves as a small dent in the huge and ever growing number of homeowners facing foreclosure in this country.

What’s in store for loan modification 2010?

It’s hard to say exactly, but experts from the Federal Housing Finance Agency predict that loan modifications in 2010 will continue to increase, and more modifications will pass from the trial stage to the permanent stage. Currently there are over 700,000 loan modifications underway, but only 31,000 of those have passed through the trial stage and become permanent. For those whose loan modifications are complete, they face monthly mortgage payments lowered by 20% on average.

Obama’s loan modification plan works by lowering the monthly mortgage payment to less than 31% of the borrower’s total monthly income. First the interest is lowered as much as it needs to be, down to 2% at the most – if this is not enough to lower the payment to 31%, the terms of the loan are extended to 40 years. Banks that engage in the program are to receive cash incentives – $1000 initially, as well as $1000 per year up to three years, assuming the borrower continues to make timely payments. The borrower will also get $1000 knocked off the principle for each year they pay on time.

The Make Home Affordable plan relies on homeowners to stay in their homes as long as they can afford to make the payments. It also relies on banks to actively engage in the program and not be stingy or difficult with the borrowers.

Although the program appears to be working for many, banks are generally slow to act on this program, and many homeowners report that the process of organizing and filing for a loan modification is monumental. However, the risk a homeowner takes by not applying for a loan modification in 2010 can be immense, and as a result, foreclosure may be unavoidable.

Loan modification 2010 can be made less difficult and time-consuming by hiring a loan modification company to put together all the paperwork and offer expert advice. For a layman attempting to put together a 2010 loan modification, it can be incredibly complicated and the rate of failure is high. A loan modification company will ensure that the applications are properly organized, in the right order. They can also tell you what to expect given your particular circumstances, and what other options you may have in order to prevent foreclosure.

For help with your loan modification, visit our home page and fill out our form!

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The Loan Modification Company

March 18th, 2010

Do you need a loan modification

to save your home?


We are different than most other loan modification companies.  We are a success based company. That means, you don’t pay until you see results.

We specialize in the following:

  • Loan Modification
  • Emergency Foreclosure Stoppage
  • Short Sale Negotiations With Your Lender

Here is our easy 3 step process for

Loan Modification:

Step 1:

Click the “continue button” on the loan modification calculator below.  You simply enter in your information and our calculator will estimate what your monthly payment would be if you were to get a loan modification approved.

If this payment will help you keep your home (you can afford it), then proceed to step 2.

Step 2:


Fill  out our quick and easy contact form.  A representative from our company will call you back and review your unique situation.  If we feel that you are a good candidate for our loan modification program, we will take you on as a client.  We will negotiate a loan modification with your lender on your behalf – without taking any upfront fees.  You are only charged the agreed upon amount once your loan modification has been successfully completed.

Please fill out the following form to see if you qualify:

Step 3

Fax us in your completed packet. This might be considered the most important step.  We cannot negotiate a loan modification if we do not have a completed packet to submit  your lender.

Once we have this information, we can begin the loan modification negotiations with your lender.

Each lender is different.  Some lenders work with us to modify loans in as little as 48 hours, while others are so backed up it can take up to 2-3 months to complete.  Rest assured, we make every effort to process your loan modification in a timely fashion.

Please fill out the form today to get started or ask us any questions you might have.



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