Loan Mod & Short Sale Going Nowhere

I have a home I have been trying to sell since october. I was proactive in contacting the mortgage company to explain that beginning in march I could not afford the high payment because of my financial crunch.

I tried to get them to lower the payment until home sells or to do a short sale or both. they absolutely refuse. in 20days I will be 3 months behind and only two buyers have shown interest in home. 

I would like to do some type of loan modification but bank won’t work with me what to do

Anthony

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Hello Anthony,

You’re not done yet.  As a matter of fact, the battle has just begun!  Here are some options:

• Determine the loan type.  If the loan is an FHA, VA, or has mortgage insurance, then you may be making your petition to the wrong party.  This is something that is discussed in the How To Avoid Foreclosure Seminar.  It’s a free thirty-minutes and I recommend it, well, because I host it.
• Determine the Holder/Owner or Master Servicer for the loan.  You may be dealing with a servicing company that does not have a stake in your workout.  This again would be a case of making your petition to the wrong party.  Sayest Thou What Oh Lender.
• You may qualify for FHASecure to refinance your mortgage.  This may involve a reduced payoff.  If your last mortgage loan was a refinance within the past three years, then check the HUD, TIL, Note and Rider for TILA violations.  An attorney may help in that regard.

With regards to a short sale and if you decide to go that route, you will need to submit the entire short sale package to the lender.  That must include a contract from the buyer.  You haven’t reached that stage yet from what I can tell.  Once you have a contract then submit it along with your hardship letter, financial statement, and supporting docs to the lenders loss mitigation department. 

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.