Thank you Karen Fiddler for a thoughtful well written post about another alternative to Foreclosure, loan modification. I too want nothing more than to help owners achieve their goals and if staying in their home is important, homeowners should do whatever they can to do so and if I can help them with that, well it is like icing on the cake.
This statement made me sad....but not because I was losing a listing. They thought I'd be unhappy because they were going to keep their home at the "expense" of my sale.
That was not MY sale....that is their HOME!
I always talk with my potential short sale sellers about loan mods. If they want to stay in the home, they might be able to. Any agent who has worked with short sales long enough also has a knowledge of the loan mod options...and who might qualify.
If a loan is under $417,000 there are federal programs that allow the lender to lower the interest rate down to 2% for a period of time. If it's a jumbo loan, I've seen interest rates as low as 5.25% for a 40 year term. All these modifications require impounds and the new payment needs to be about 31% of their monthly gross income. But if this scenario is close.....then it might make sense to try a loan mod.
We can do both at the same time....I've seen clients well into the short sale process receive a nice loan mod offer and pull out of the sale. Sometimes the lender needs to see what a short sale is going to do to their bottom line before they look seriously at making the current owner a reasonable offer.
And what about the buyer who has waited? And the Realtor® who has worked so hard for the short sale? I just don't think there are people out there who can be so hard-hearted and cold as to begrudge a family keeping their home. At least I hope NOT.
When I accept an offer on a short sale listing, I make sure it's disclosed that the owner would like to keep their home, and if a decent loan modification was offered, they would consider it. The buyer and buyer's agent are informed up front. Normally, we've already gone down the loan modification road if I have the listing active. If a seller wants to keep their home, I will help them with comps and websites where they can pre-qualify themselves....see if it's a reasonable option.
*I do not charge for any help I can provide for a loan modification
*I do not give legal advice of any kind
*I do provide referrals for CPAs and Attorneys (no, of course there are no kick-backs....sheesh)
*I disclose, disclose, disclose.....no surprises, no false expectations, no hard feelings
So.....please, please, please....do not apologize for keeping your home! For having more holidays, more birthdays, more BBQs in a home you love! Nothing could make me happier!
The Fiddler Realty Team/eVantage Real Estate
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Helping buyers and sellers since 2004. A Venice/Englewood Florida resident for almost 40 years, put my local real estate knowledge to work for you today. My coverage areas include Southwest Florida include Venice, South Venice, North Venice, Nokomis, Osprey, Casey Key, Manasota Key, Englewood, Rotonda West, South Gulf Cove, Grove City, Placida, Cape Haze, Port Charlotte & North Port which are located in Sarasota and Charlotte Counties
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