Today’s theme is regarding Loan Modifications. We chat concerning them briefly on occasion, but we don’t generally speak a lot concerning them. Fred got a telephone call from some acquaintances that were merely wondering what their choices were in the present economic era. They are essentially spending each dollar they make every month. They aren’t behind on payments, but they are just keeping up. One of their acquaintances suggested that they just walk away from the house and another friend suggested that they attempt a loan modification with a loan reduction. There is a prospect that the lender would reduce the principal balance.
Fred would like to identify what everyone else has experienced with loan modifications. He’s just wondering if anybody has actually seen evidence of a successful modification to a principal balance. There are thousands of viewers that watch Shortsalepowerhour.com, but Kevin and Fred have still not met anyone that has done a loan loan reduction.
We can assume that there are some good reasons that lenders don’t do loan reductions on a regular basis. If the lenders did this for a couple house owners, everyone would be doing it. There wouldn’t be any reason for property owners to pay their existing mortgage.
Nevertheless, if the lenders agree to a short sale, they get their cash right away. Then they can lend out that cash again with a new loan. The short sale is undoubtedly the greatest selection for the lender and for the home owners. As further evidence from HAMP itself, the gov’t sponsored loan modification program, 25% of all HAMP modifications are at least thirty days late. The short sale is undoubtedly the best option for the lender and for the house owners.
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