Why Loan Modifications Don’t Work

5.25.16  BY Robert Nichols

Many Sellers who are facing foreclosure are notified by their lender that they should try a loan modification, but the reality is that loan mods don’t work in most cases. Many lenders will deny them or agree to a loan mod that you can’t afford. The worst loan mods are the temporary arrangements, where the bank agrees to accept a reduced payment for 6 -12 months, and then pulls the rug from under you by canceling it after you’ve made all of the payments on time. Some sellers are able to successfully get a loan modification, but many are not. The reason being, if the banks made it easy, then everyone would do it. If you tried to get a loan mod and it didn’t work out, a short sale is your next best option. You can receive relocation assistance, get a fresh start and be ready to buy again in as little as two years.