MORTGAGE TROUBLE? LOAN MOD, SHORT SALE OR BANKRUPTCY?

Many people ask me when they get into mortgage trouble; Should I do a Loan Modification, Short Sale or Bankruptcy?

For a FREE phone consultation, to see if you may qualify for a Loan Modification, call me at 702-997-5747 or email chrisvoss11@gmail.com

If you're having hardship problems with your mortgage, here is the 1st three things you should do, in order of attempting first to last:

1. See if you qualify for a Loan Modification. You can try personally asking your Mortgage Lender do a Loan Modification on your loan. Keep in mind many people have cited frustration with this process. The company will usually keep sending them to the Collections Dept. whose best interest is NOT to reduce the loan and see if they can shake any money out of the borrower with pressure. Collection Agents are judged on a per forma basis, so they dont really have the borrowers full interest at heart in my opinion. In the end a Mortgage company tends to respond better to Loan Modification Attorney letters for obvious reasons.

Reason for Loan Modification: Best chance you have of renegotiating your mortgage and STAYING in your home. In a few years, hopefully as the market recovers, you can refinance out of the troubled loan.

2. Short Sale is the next step. If you cannot qualify for a Loan Modification. A Realtor can help you accomplish a short sale on your home. Usually, not qualifying for a Loan Mod means that your income has fallen to a point you cannot afford the home your living in.

Reason for Short Sale: A short sale is great for getting you out of your mortgage loan and out of an upside down equity home. Even better, depending on your credit, it keeps foreclosure off your credit and makes it easier for you to buy another home in the future.

3. Bankruptcy: A Bankruptcy will affect your credit for 10 years and should be a last ditch effort. Its likely if you cant qualify for a Loan Modification on reduced income, the Bankruptcy Court will also determine you cannot afford the home. You have the highest likely hood of losing your home in a Chapter 7, which most people file. A Chapter 13 is a payment plan and a 7 is a liquidation of assets. In some cases you can lose cars or other equitable assets. ***REMEMBER - Filing a Bankruptcy MAY NOT save your home, your credit is stigmatized and it will be harder to get a home loan because of it. CREDIT STANDARDS HAVE GOTTEN TIGHTER. LENDERS HAVE CHANGED BANKRUPTCY GUIDELINES, ITS FAR HARDER NOW MORE THAN EVER TO GET A MORTGAGE WITH A BK IN YOUR PAST. Also note BK's may not wipe out IRS or Government debts. If after consulting with an Attorney, he determines you have a good chance of keeping your home, you might be ok but keep in mind, there are NO guarantees its up to the Court and the Trustee.

Reasons for a Bankruptcy: Get a complete "do over" on all your debts and wipe the slate clean. It may take you years in this credit environment to rebuild your credit, but I would recommend it as a last ditch effort.


I personally work with a successful Loan Modification company and I can tell you if you most likely qualify for a Loan Modification.For a FREE phone consultation to see if you may qualify for a Loan Modification call me at 702-997-5747 or email chrisvoss11@gmail.comIf you dont qualify I can refer you to some great Short Sale Realtors and Attorneys.