Short Sale Home » Seller » Short Sales vs. Loan Modifications

Short sales have become quite common in the past year, helping many people get out from under a difficult situation. At the same time, quite a few attorneys have nestled themselves into a nice niche to do loan modifications for troubled borrowers.

The last time short sales were such a huge part of the real estate market was back in the mid 1990’s when the market also fell due to investor inflation in the real estate market.

Many homeowners are trying to decide, what workable options are available to me NOW and which one work. Loan modifications would enable you to keep your home, but of course, you would need to be able to qualify for a loan modification in the same criteria mortgage lenders use to qualify a buyer looking for a loan. During a loan modification, the attorney will try to renegotiate the loan to allow the homeowner to afford the home. Prior to missing any payments, it’s good to speak with the lender to get an idea of what could be affordable for each party.

In many cases, loss mitigators will want to speak with the attorney and the homeowner at the same time on the phone. Usually the loss mitigator may say that it wasn’t necessary to include the attorney to do a loan modification.

There are some law firms which specialize in loan modifications and have working relationships with investors who can purchase your home if the loan modification does not work out. They will structure a short sale with the law firm.

If you are going through a situation in which you are considering a short sale, then first speak with a Realtor who is familiar with loan and short sales. They may be able to guide you to the right choice, although always make sure to keep an eye out for fraud.

Tags: loss mitigator, mortgage lenders, real estate market, short sale seller