Loan Modification

To Avoid Foreclosure

The best way to stay in (not sell) a house that you want to keep long term may be a loan modification. This involves a lender modifying your payments so that you can afford to keep making them. The modification could include lowering the interest rate so that the payment is lower, or even adjusting the principle balance on the loan.

Advantages and Disadvantages

The advantage of a loan modification is that it can make an unaffordable loan affordable.

The disadvantage of a loan modification is that, based on our observations, most of the time the houseowner pursues these, they are ultimately not approved, or almost certainly not approved in a way in which it is helpful enough for the houseowner to stay in the house. In other words, most of the time it does not work and the result is foreclosure.

In a typical scenario, a houseowner will hire an expert to negotiate the modification. Please carefully research any company that offers this service for a fee. Usually the houseowner will be told to stop making payments during the negotiation. At this point the lender will tell the houseowner that a modification is being considered. Unfortunately, based on our observations, most of the time the modification is ultimately denied (just before a foreclosure) and the houseowner is not able to make up all of the late payments and significant interest, penalties, and legal fees, and thus the result is a foreclosure.

Loan Modofocation to Avoid Foreclosure in Mesquite TX

Sell Property Now

    The types of modifications that have a higher success rate involve converting an adjustable rate loan to a fixed rate loan or pushing out the interest rate adjustment for a couple of years. The types of modifications that have a lower success rate involve reducing the principal balance on the loan. Because many houses are so far underwater that a workable loan modification are usually not achieved.

    Loan Modifications rarely work. Before exploring this option, make sure you talk to a real estate professional like Dallas Houses for Cash about all of your options! Regardless of your situation, if you are interested in discussing all of your options for selling your house quickly contact us.