What is a Loan Modification?

A loan modification is a permanent change in one or more of terms of your original loan,  allows the loan to be reinstated, and results in a payment you can afford.  This can be done by changing one or more of the following terms of a loan.

1.  The loan amount

2.  The amortization of the loan

3.  The interest rate

4.  Converting loan from an adjustable to a fixed

What is a Short Sale?

A short sale is when a lender agrees to take an amount less than the balance of a loan.  A lender is willing to settle due to the decline in property values.   Faced with either an increase in expenses or a decrease in income, many homeowners find themselves no longer able to make their monthly payments.

5 Steps In A Short Sale

1.  Listing a property that is either in default or will be in default

2.  Accepting an offer from a buyer

3.  Submitting the Short Sale package to the bank

4.  Negotiation of the loan(s) payoff

5.  Finalizing the sale