Is a Short Sale Smarter than a Loan Modification?

Is a Short Sale Smarter than a Loan Modification?

Choosing to sell your home with a short sale or keeping your home with a mortgage modification is a dilemma facing many Scottsdale and Phoenix area homeowners. It is really a personal financial choice as to whether you decide to sell your home or not.

Factors to Consider

If you have lost your job and don’t have sufficient income to keep making your current mortgage payments, but have enough to make a reduced payment, then a mortgage modification may be the answer for you. However, if you don’t have sufficient income to make any mortgage payments, then selling your home with a short sale is a better solution.

Before Making a Decision

Before you make any decisions, talk to a housing counselor, short sale company, attorney or financial adviser to find out all your options. Other solutions may be to obtain forbearance, refinance or a short refinance. As a last resort, another option would be filing for bankruptcy protection; this can be save some people tens of thousands of dollars compared to foreclosure in tax consequences. This is why it is so important to act, find the solutions, versus just ignoring the problem and letting the bank foreclose.

Requirements for Both

Both short sales and mortgage modifications require the following:

• Financial hardship
• Submitting financial information to your lender such as your paycheck stubs, W-2 or 1099 forms, tax returns, bank statements and a financial statement.
• Insufficient assets to pay off your loan
• Default on your mortgage payments
• Decline of property values

Negotiating Time

Both short sales and mortgage modifications can take approximately the same time to negotiate. Expect at least three months before you get an approval.

Why They Fail to Get Approved?

The reasons why short sales and mortgage modifications fail to get approved are the following:

• The homeowner has too many assets
• Documentation submitted to the lender is either missing information or incorrect
• Person in charge of negotiating does not have experience in negotiating mortgage modifications or short sales
• They take too long to get approval. Either the homeowner gives up or in the case of a short sale, the buyer walks away.

To help make sure your short sale or mortgage modification gets approved, you should hire a professional company who specializes in obtaining short sales or mortgage modifications and has gotten results. The Cameron Team is such a company that can help you with all your home selling needs. We are experienced and knowledgeable agents that have a track record of helping our clients in the Phoenix, Scottsdale, Peoria, Glendale, Anthem, Desert Hills, Rio Verde, Tempe, Mesa Chandler, Gilbert and the surrounding cities. We can recommend an attorney to you that will provide a FREE 15 minute consultation if you desire.

We know that saving homes is the best for everyone, and we want to help you too.

For a FREE packet of information about how to avoid a Foreclosure, go to www.NoForeclosureAZ.com

Or

Are you ready to take advantage of this market? Do you want advanced notice to new bank owned properties before they hit the market? www.ArizonaBankDeals.com see new foreclosure homes before most other agents even know they exist!