It's a great question, let's start with

Loan Modification?

A loan modification is perfect many times for homeowners who want to stay in their homes. The idea is the Lender voluntarily decides to modify the terms of the loan so that the borrower can maintain their payments.

The borrower might be behind in their payments, might be in Default or Foreclosure, or might be current on their payments.

If the borrower wishes to stay in the property, they should examine the possibility of a loan modification or refinance, first.

Short Sale?

Sometimes it's not possible to modify the loan even if the borrower would like to stay.
Other times, the value of the home has dropped significantly and the borrower is "upside down".

In either case - if the resulting sale "nets" less than what is owed to all interested parties, the transaction is deemed a Short Sale.

If the borrower wishes to get out from under the burden of the property, or there is little other options, a Short Sale may be in their best interest.

While it is hard to determine the actual damage everyone agrees that a Foreclosure will have a devastating impact on the credit score for a very long time.

Most estimates say a Short Sale will result in a drop of 100 points and have a negative impact for only a couple of years.

Request help with your Loan Modification or Short Sale right now!