A Loan Modification or a Short Sale?
For the millions of families across America who are struggling to pay their mortgage payments, there are various options to them. Of course there is foreclosure but this is not a one that most people opt for. There are two other main options for these families that are very viable depending on what their wishes are. These two options are include the loan modification or the short sale.
The loan modification is for those who prefer to keep their home and are willing to have a negotiation with the lender concerning the terms of their mortgage. The individual usually works with a mitigation specialist who completes their evaluation and if they wish to pursue the matter, the specialist also completes the application and the negotiations for the client. They agree on the new terms upon approval and the pay schedule is arranged.
Not all families are in the situation where they wish to keep the home. Some are in the position where they want to be free from the responsibilities of having the mortgage altogether. The same type of mitigation specialist can assist in this type of situation which is called a short sale. These short sales do not have a negative impact on the credit which is why so many people opt for them. The mitigation specialist negotiates with potential buyers that are supplied by real estate agents on the price and they make a choice based on an agreement between a buyer and the lender. In this way, the lender is satisfied with the price being given, a buyer has a deal on a home, and the client does not have a mortgage to pay any longer.
For anyone who is finding it difficult to make payments, before deciding on an option, it is highly recommended that they do a lot of research and soul searching as to whether they want to keep the home or lose the mortgage completely.
