In California an attorney is the only licensed contractor that can ask for payment upfront, they call it a retainer -- its illegal for anyone else. Once California designated Modification Outfits as a contractor, they were limited to maximum of $500 upfront and the rest upon delivery of modification. Since the modifications are meaningless, these outfits figured the homeowners would NEVER agree to pay the balance once they got the horrible modification. Hence the birth of the Modification Attorneys- same modifcation outfiters, but now in the office of an attorney that can require full payment upfront regardless of outcome-- plus it sounds better.. "Hiring an Attorney".
Banks Crunch Numbers - its based on income and figuring out all of your liabilities. Having the payment drop by $1,000 dollars seems great, until you figure the new payment is $2,000 - exactly what you bring home before taxes... what about food, clothing, taking wife out for a nice dinner once in a while, how about the kids to the movies ? - Plus most modifications have 15 year balloon payments - will you have enough equity to refinance in 15 years, what about selling -or- will you be in the exact same boat as you are today???
Cut your losses now ! Do a short sale, talk to an agent that you feel most comfortable with. In 3 years, look to buy a home again, but this time at a most affordable price !!!! and in 15 years, instead of going back to worrying and lamenting - figure on that you may have some equity built up - if nothing else, that you paid less than the current rents !!!!
I work in the Inland Empire - Let's talk, we can meet at a Keller Williams Office or the privacy of your home. There's more to this, and you need to hear it.
Most Kindest Regards,
KELLER WILLIAMS REALTY
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