Short sale vs. loan modification

Your home value is underwater.  Not like in the Nashville flooding disaster, but as in home value less than mortgage debt.  Should you consider a short sale, loan modification, or another option?  Tara-Nicholle Nelson offers a smart perspective in her article 3 tips for a successful short sale | Inman News.

Because each of these options is somwhat hit or miss, the answer may be "all of the above." - David

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Try forbearance to fix late mortgage

Try forbearance to fix late mortgage.  This is a lesser-known term than "loan modification," but in some cases it can give a homeowner time to get back on his/her feet.  Definitely worth a try if you are in need of mortgage relief. -David

A Really Really Bad Idea (Popular Too)

This might be the bad idea of the month.  Facing bank foreclosure on his home, a Moscow homeowner decided to bulldoze his home instead.  Now you and I know that he just violated a major loan covenant.  But to him, at the the time, this seemed like the right way to get back at "the man."  Hope that works out for him.  Oh, two other points:

How lenders decide whether to modify a mortgage - MarketWatch

Ever wonder how lenders decide whether to modify a mortgage?  Sit down, relax, take a deep breath, and read this (partial) answer. - David

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What Mortgage Modifications Say About the Housing Market - CNBC

B of A, a huge mortgage lender, has staffed up its troubled loan team and signalled a greater willingness to grant loan modifications.  But this is off a tiny base, so a relatively small proportion of homeowners needing help have actually received it. Still, it's moving in the right direction.  - David

Underwater move-up strategies - Inman News

I do not endorse wrap-around mortgages or all-inclusive trust deeds (AITD's). They're generally viewed as attempts to subvert the intention of the bank or investor holding the original mortgage, and that's not a good strategy for people who like to sleep at night.  Still, creative strategies are needed for homeowners who are underwater and need to make a move. An experienced Realtor is essential to the mix, and a real estate attorney may help to achieve a successful solution as well. - David

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Rewards for responsible homeowners | Inman News

A really smart idea by Tom Kelly, columnist for Inman News: Let's reward those who have HONORED their mortgages!  Proposed to Congress by the National Assn of Realtors, but they haven't gotten it...yet. - David

Rewards for responsible homeowners | Real Estate and Technology News for Agents, Brokers and Investors | Inman News

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