I am a member of Realty Trac, which is the source for information and statistics in the real estate industry...
Read this Article....
Let's face it.. Loan Modifications are not working... Since 2007, I have had only 1 client get a loan modification and I have worked on well over 100 transactions... Many of my clients tried for months before giving up and realizing that the short sale was in their best interest and hassle free..
Recently, I had a client who was given a loan modification right before closing on the short sale which would reduce her interest rate in half and thus her monthly payment... My client said yes if the lender would reduce her principal balance to what they approved the short sale for, which was $120,000 less than what was owed. The bank said no and so did my client and they were happy to accept the short sale... Financially speaking, it made more sense to do the short sale vs. loan mod. In 2 short years, they can qualify for a new loan....
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