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Not Prepared to Give up Your Home Through Foreclosure or a Short Sale? Then Consider a Loan Modification.

Seattle Short Sales - Thursday, January 31, 2013

We have noticed, over the years, that many loan modifications that struggling homeowners have attempted end up failing. Many borrowers who have come to us to negotiate their short sale actually started out by trying to work with their lenders to negotiate a loan-mod. After months of negotiation (or, in some cases, years!) they either were denied the loan-mod, or they were granted a loan-mod with terms that did not help them in the end.

However, this doesn't mean that the idea of getting a loan modification is necessarily bad. In many cases, it means that the negotiation process was not carried out effectively. For many homeowners, a short sale is the fastest and surest way to permanently rid themselves of mortgage debt that they can no longer afford. However, for others, keeping the family home if at all possible is their top priority. They are not prepared to give up their home, whether through a short sale or through foreclosure, without a fight. For them, negotiating more favorable mortgage terms through a loan modification may be the key to keeping that home.

Unfortunately, we have heard countless tales from our short sale clients of how they spent months, or even years, trying to negotiate a modification with their lender - with no success. Problems that led to their modification failing to get approved range from lenders repeatedly losing paperwork, to lenders continually changing terms or eligibility requirements or submission documents.

We’ve also heard from many homeowners who did manage to negotiate modifications - only to find out the hard way that they cannot meet the obligations of the new loan terms. Often, the new payments still end up being more than the homeowners can afford on the long term, and they end up re-defaulting a year or so later. And, believe it or not, in some cases, the new payments actually end up being higher than the original loan payments!

We've decided to apply our years of experience in facilitating negotiations between struggling homeowners and their lenders to the field of loan modifications too. We want to help struggling homeowners negotiate loan-mods that will actually help them. Everyone’s situation is unique, and there is no single solution to financial troubles that works for all. Our experienced case managers review each homeowner’s situation individually. We look at the pros of all possible solutions - loan modification, short sale, bankruptcy - and our professionals work with our clients all the way, from making the important decisions and making a plan, to carrying out that plan.

We now have an attorney on staff who is dedicated to loan modifications. We look forward to this expansion in our services - so we can review each homeowner's unique situation carefully and offer all options to them.

Our plan is to focus on residents of Washington State who have recently received a Notice of Default (NOD). We will then file immediately for mediation, under Washington’s Foreclosure Fairness Act. Filing for mediation typically stops the foreclosure in its tracks. It allows us time to review the homeowner’s situation, and come up with an appropriate solution. If a loan modification is the best solution, this allows for a very manageable loan modification process, where we work directly with the beneficiary of the borrower’s note.

Seattle Short Sales has a team of experienced and successful real estate specialists dedicated to working with distressed homeowners. We close, on average, 12% of all short sales per month in King County. In the last 24 months, we have negotiated over 756 short sale approvals, and discounted over $81 million of mortgage debt for distressed homeowners.

In addition to our short sales negotiators, our team includes dedicated professionals advising and advocating for homeowners in the fields of: loan modifications, bankruptcy, debt settlement and collection defense. As part of our service, we offer unlimited attorney and CPA consultations.

If you are a homeowner who is struggling to make ends meet, and would like to learn more about the options available to you, please go to: http://seattleshortsales.com/homeowners/


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