What is a Loan modification?A loan modification is where the bank modifies your loan to a lower payment to try to help you continue to stay in the home. Please note to get a loan modification in most circumstances, you have to be employed.
What exactly is a short sale?A short sale is when a bank is willing to let you sell the property for less money than you owe on the mortgage in exchange for the property not going to foreclosure. The pay off on the mortgage is “short” hence the name “short sale”. This means that market value on your home is less than what you owe in today’s market, causing a negative equity position.
What should I do if I receive a letter saying my home is going to be sent to foreclose?Do not ignore letters or phone calls from your bank! Ignoring is the worst thing you can do! If you are having problems making your payments, take action immediately, reach out to a professional to help you in your situation. Do not hesitate!! The quicker you can be proactive on this, the better. Waiting and ignoring the situation at hand could push you in a direction where your options will be reduced, and may limit your control of the situation and put the control in the banks hands.
Part three to follow soon, stay tuned!!