Foreclosure, Short Sale or Loan Modification: Which Option Is Best?
Well, of course, it all depends on the circumstances and the homeowner’s goal. The bottom line is this: (a) If the homeowner wants to stay in the home, and (b) the homeowner can make the payments if the payment is lowered (through a principal reduction, rate reduction, re-amortization, etc.), then loan modification is the best solution. Talk to me about this option if you think this is for you.
If the homeowner cannot make the home loan payments now, and would not be able to make the payments even with a loan modification, then selling the home would be the best option. If the homeowner owes more than the home is worth, this would be a short sale. A short sale is preferrable to a foreclosure when it comes to credit recovery.
If the short sale does not sell in time, the property may be put into foreclosure by the lender; at this point, the owner has less control of the process - and the outcome.
Check out this article in the Mercury News last week, looking at the progress and results of loan workouts vs. foreclosures.
http://www.mercurynews.com/ci_11074314?nclick_check=1
Check out the rest of the weeks’ most important real estate articles. You’ll thank me.
http://www.car.org/media/pdf/Beyondtheheadlines_120408.pdf
Contact me with any questions.
Kevin P. Cummins
Realtor / Broker / Attorney
Coldwell Banker – Carmel Valley
Cell: 858-750-9577
Search the MLS on my new website at kevincumminshomes.com.
