Change is a good thing!

Just a word about loan modification...your lender calls this "loan workout". It is helpful to use "their" language when you call the bank to say "HHHHEEEELLLLPPPP!". And banks are helping. A year ago, banks did not have a process for short sales, now they do and things are running smoother. Now, modification, this is still uncharted territory but I can tell you that calling and asking for the department that handles loan workouts is becoming easier. I do a lot of this negotiation for my clients because I feel it is important to not disappear when an escrow closes. My job at this point is to try to keep those homeowners that want to keep their homes, in their homes. No modification is not always an option, sadly the statistics are not good. Within 6 months, 58% of homeowners who recieved a modificiation are in default, which means headed for short sale or foreclosure. The reason for this...banks are not yet processing principle reductions unless the vehicle is a short sale. As a consumer, you can request a payment vacation and the payments are not forgiven just delayed, added onto the back of the loan. If there has been a reduction in income but not a loss of income then a modification may be the ticket. My advice...approach it from a standpoint of the monthly payment you can handle and let the lender figure out how to get you there. Believe me, the banks are hurting too and they do not want to own your house! They want to loan you more money so they need to keep you in a viable financial situation. It may be taking them awhile to figure it out but from my experience I have seen huge strides in the way banks are working with both borrowers and Realtors. And remember, just because they say "No" doesn't mean you can't ask again...and again...and again...that's negotiation and it is a lost art. It's time that we rediscovered this particular lost art.