Considering a Loan Modification? ... Ask Yourself These 5 Questions First!
If you are falling behind in your monthly mortgage payment and are thinking about a loan modification ask yourself these five questions. Â
1. Has your bank already begun the foreclosure process?
If your bank has already begun the foreclosure process then the clock is ticking.Â Â Just starting the modification process will most likely not delay the foreclosure in most cases.Â Â
2.Â How much other debt do you have?
While a loan modification may sound like the perfect solution if you have a high debt-to-income ratio your chances of receiving a loan modification are pretty slim.
3.Â Is the issue causing your hardship temporary?
For most homeowners facing foreclosure the cause of their hardship is not temporary.Â Â Loan modifications are in most cases a temporary solution.Â Â More than half of the people that receive loan modifications are at least 30 days delinquent within 6 months.
4.Â Is it mandatory that you remain in your home?
This is a tough one for most home owners because they have a strong emotional bond with their home.Â Â If thought through logically most people would agree it's a bad financial decision to keep throwing money at a home that is upside down by many many thousands of dollars.Â Â What would your answer be to this question if you could sell your home as a Stanislaus County Short Sale now and in a couple of years buy an even newer and nicer home for less than you are currently paying?
5.Â Have you considered other options?
options include selling your home in a short sale.Â Â You may be able to
sell your home now and get out from under that massive debt that you
now face.Â Â Most banks are willing to work with you on a short sale of
your home.Â A short sale on your home is much less damaging to your
credit than a foreclosure would be so you can get back to being a home
owner much sooner.
If you want more information about a Stanislaus County Short Sale give me, Jim Patton, a call at 209-633-2839 and we can discuss your situation.Â I look forward to hearing from you.
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Jim Patton - Realtor, Short Sale Specialist, CDPE
Century 21 M&M and Associates
The author of this blog, Jim Patton, is a full time Realtor with Century 21 M&M and Associates.Â Jim is a Central California Short Sale Specialist who lists and successfully sells short sales throughout Stanislaus, Merced and San Joaquin counties. Call Jim Patton at 209-633-2839.
The views expressed herein are Jim Patton's personal views and do not reflect the views of Century 21M&M and Associates
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