If I’m in Foreclosure, is a Short Sale a better option than a Loan Modification in Florida?
In deciding whether to sell your property through a short sale or attempting to obtain a loan modification, it’s important to determine what makes better sense for your financially. While the overall goal of a loan modification is to lower your monthly payment and keep your property, it still may not be beneficial in the long run. The Banks sometimes structure loan modifications in a way that really are not much different than the previous loan that put you in the present situation. Loan modifications can also be timely and if you are in default on your mortgage, you risk increased fees as the Bank could potentially add to your new loan modification amount.
As Foreclosures are no longer as rampant as they once were, many people have decided to short sale their property. The advantage of selling your property through a short sale is that it allows you to sell your home for less than the amount you owe. It is true that the lender takes a loss, but they usually waive the amount that you owe to them. This allows you to walk away from your home but still have the opportunity to purchase a new home in a much quicker time than if your property had been taken away through foreclosure. If you are a homeowner in Florida and are unsure about whether to sell your property through a short sale or attempt to obtain a loan modification, contact the Law Office of Brian P. Kowal, PA today at (954) 990-7552.