In Jacksonville Florida, many homes have been abandoned by the owners after frustration of dealing with a mortgage modification.  It's happening in every neighborhood and in every income bracket.

I blame the mortgage companies! The general public is not aware that a Short Sale is the best option versus just walking away from the mortgage.  If an owner attempting a loan modification actually hangs in there with his mortgage company after months and sometimes years of frustration and red tape, eventually the mortgage company may finally deny the modification and then recommend a Short Sale......occasionally.

Short Sale is an option, and most often the best option.

Do not call the bank and ask if you can do a short sale!

If you call the bank and ask if you can do a short sale, what will they say?  They will say, "You must apply for a loan modification first.  Based on your situation we may be able to significantly adjust your mortgage payment".  This sounds great, however go ahead and prepare yourself for an extremely painful and emotional roller coaster of not knowing for months and sometimes years what your fixed mortgage payment will be, if you need to move, if they will foreclose anyway, where you will live, etc. (After going through this, maybe this is why so many home owners abandon the homes)

If you are upside down in your mortgage, you can't pay, and your bank is unwilling to reduce the balance owed on the loan (which none of them will), do a short sale!  Doing a loan modification on a underwater home is just not good financial to your financial planner.  Talk to your attorney.

Posted by Brad Officer on
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