Benefits Of Choosing A Home Loan Modification Over A Short Sale
As the US economy entered the recession a decade ago after the housing market crash, many Americans found themselves struggling with their mortgages. Adjustable rate mortgages, payments that were too high, you name it, a domino effect ensued. Many people were upside down in their mortgages, and the foreclosures were running rampant. In the face of foreclosure or any other sticky mortgage situation, two options that exist are a loan modification and a short sale. What are the benefits of choosing the loan modification?
Have you heard of HAMP? It’s the modification program that the US government started in response to the foreclosure trend described in the previous paragraph. It’s important to understand that there are different types of loan modifications. Even under HAMP alone, there are various ways that homeowners can find relief in regards to their mortgages.
When facing foreclosure, homeowners find themselves in stressful situations that are hard to deal with. Sometimes they think the necessary action is to wipe the slate clean quickly and go after a short sale. A short sale can be beneficial in certain situations, but it’s not always the answer. It’s time to look more closely at the benefits of choosing a loan modification over a short sale.
In some instances, the interest rate on the mortgage can be lowered. The repayment period of the loan can be modified, and there are even times when a particular portion of a home loan can be forgiven. Payments can be halted as well, and it all depends on what is best for you and what you qualify for in regards to your situation. A home loan modification isn’t the easy way out by any means, but it is an opportunity for homeowners that are struggling to stay in their current homes.
With a short sale, you’re certainly getting ready to move on to a different place to live. You are hoping that the short sale provides enough capital to pay off the mortgage and then some, but that’s not always the case. As a matter of fact, when people are upside down in the mortgages, it’s unlikely to be the case. It’s still best to have a more workable solution, and the home loan modification options available to you might be the best choice. We recommend using the best short sale realtor San Diego company
Not only would you keep your home, but your credit wouldn’t be in the toilet either. A short sale might be better than a foreclosure. Before you throw in the towel, it might be a better solution to see what you can do to stay in your home. Financial difficulties are never easy, but perhaps you can get through this with the same roof over your head, one day at a time.
You will undoubtedly have to find out if you qualify for a loan modification. There are going to be steps that you have to take. They are worth exploring if you want to stay in your home. You have to see what’s available to you in the form of a mortgage loan modification.