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99% of Loan Modification Transfer Title…

The basic reality that needs to be understood by a homeowner is that when ANY paperwork is done on or for a loan modification there is a 99% chance that there will either be a short sale or a foreclosure.

The reason why?

Simple, other than the 1% that hit the lottery or the homeowner that gets a full rewrite or recast or alternatively a possible balance reduction on their existing loan terms, they won’t!

It is just basic math.

If it turns out 99% of loan modifications will not convert to full new loans, why exactly then do the banks keep pushing for them, why should agents help homeowners and why do homeowners want them?

Banks always want information, Agents want to homeowners and homeowners want to stay in their homes.

The possible outcomes:

2, 5 or 10 year adjustment of terms and rate. This is the best case scenario when requesting a new loan modification. The horrifying reality is this, even if the homeowner makes every single payment they will eventually hit the end of the terms. 99% of these loans modify for a second time and all the homeowner has actually done is delay the inevitable sale of their home. To be eligible for a the longer term adjustment depends on the original loan. Basically the better the original loan the better the offer on the loan modification. A loan modification will always meet an end to its terms. Further it will correct the delinquent payments on their credit and in most cases becomes a short term for a long term problem need a very real solution.

Trial loan modifications. There is a possibility of a trial loan modification becoming a short term loan modification. However the stats on homeowner not making payments even on trial loan modifications is staggering. The reality is simply this, if a homeowner gets a trial loan modification there is a 90% chance that it will go back in default (missed payment).

So the current market has created the band aid effect to get us through an election period and hopes that the economy and employment will magically all turn around.

Homeowners want hail marry passes to get to stay in their home and the banks/government are freezing the sale of REOs in an attempt to inflate home prices.

I still preach and push this basic thought: Write it off, take the loss and move on!

Its what the banks all want…

Leesa Hammond

Century 21 Amber

(310) 890-4439

mrsleesa@gmail.com

Failure Rate on Loan Modifications |Short Sale | Leesa Hammond