What happens if I paid my 3 month trial modification, then stop paying after 3months because it is too much and want to do a short sale?

Asked by Peaceandpowerparenting, Hurd, ME Tue Jul 31, 2012

should I wait for the bank to send me a NOD or tell them up front I want to short sell? We already told them we can't continue to pay but have not received any formal letter. When you get a NOD can you still decide to short sale?

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Christine Mc…, Agent, Los Alamitos, CA
Tue Jul 31, 2012
I would suggest you advise the bank that you will need to Short Sale versus waiting for the inevitable NOD. First of all, if you wait for the NOD the clock is ticking and you may not have enough time to get the property Sold, Secondly the Debt Foregiveness Act is due to expire at the end of this year and if you have realized you can not afford the home you should start the process right away, Lastly, the Short Sale and Loan Modification departments are separate and typically do not communicate efficiently. I suggest you contact each departmently advising them of your intention and list the property right away.
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Gabino_Barre…, , Lawndale, CA
Mon Aug 27, 2012
You could request for a secon modification. I seen it!!
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Sharonne Chiu, Agent, Tustin, CA
Tue Aug 21, 2012
Contact your lender and initiate the short sale process. There are several incentive programs available that will pay you up to $30,000 at the close of your short sale. Visit my company website at: http://www.MoveUpProperties.com
its full if helpful tips. I have closed many and each seller received a minimum $3000 and the highest deal was $29,000.
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Michelle Gon…, Agent, Los Alamitos, CA
Tue Aug 21, 2012
The 3 months is usually a trial period to see if you can afford to make the modified payment they are offering you. If you decide to do a short sale you should let the bank know as soon as possible. When you receive the NOD you can still short sale but it is best to get the process started as soon as possible because short sales do take time. Depending on your loan you may be eligible for some moving expense money from your lender. Feel free to call or email me with any further questions, I am familiar with the short sale process and have been SFR, CDPE & HAFA Certified.

Michelle Gonzalez
RE/MAX College Park Realty
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Matthew Bart…, Agent, Glendora, CA
Tue Jul 31, 2012
Hello Peace&Powerparenting,

I recommend that you do not wait any further to begin the short sale process. You should also know that a trial modification means absolutely nothing. Unless you have an approved loan modification in writing you have not been approved for a modification. I suggest you begin interviewing Realtors right away so that you can begin the short sale of your home. Good luck to you!

Warmest Regards,


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Todd Foust, Agent, Anaheim, CA
Tue Jul 31, 2012
Yes you can still do a short sale after you get an NOD. Your timeline is crunched up and you will lose some valuable time for sale but it is possible.

Its really hard to say with regards to what will happen with your trial modification since I have no idea of the terms, what you've paid, etc.

Email or message me if you'd like to share more specific details for more specific answers. Best of luck.
Web Reference:  http://foustonline.com/
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Jul 31, 2012
Can you think of a single reason why the Bank should work with you?
They will not believe that you know what a COMMITTMENT is.
Most people would give their eyeteeth to have a successful MODIFICATION;
and you didn't even last 3 months!
It makes it hard to blast the Banks for their policies and treatment.
0 votes
you are really rude.
Flag Sat Sep 15, 2012
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