Can I Do A Short Sale After A Loan Modification?

On January 7, 2013, in Qualifying for a Short Sale, by Santa Maria Short Sale Agent

Can I Do A Short Sale After A Loan Modification?

Basic RGBLoan modifications have been touted as the solution for the housing crisis, but often times they are not.  Why?  All loan modifications are not created equal.  Simply reducing someone’s interest rate without eliminating negative equity with a principal reduction will help some but not all.  Homeowners who purchased with financing between 2005-2007 are often still deeply underwater.  As a result, some underwater homeowners may still find themselves in need of a short sale even after a successful loan modification because their payment is still too high or because of a life event that necessitates a sale of the property.

Even after a loan modification, unemployment, distant job relocation, reduction in income, divorce, or death of a borrower can force a short sale.  So the question remains, can I do a short sale after a loan modification?  As an experienced short sale agent, I have done quite a few short sales for people that have already received loan modifications.  As long as the loan modification agreement does not prohibit a short sale, the homeowner should be able to complete a short sale if they otherwise qualify for it due to legitimate hardship.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, Fannie Mae, Freddie Mac,  and others.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Tni LeBlanc and MInt properties are not affiliated or endorsed by any lender.

Copyright© 2012 Tni LeBlanc *Can I Do A Short Sale After A Loan Modification?*

2 Responses to Can I Do A Short Sale After A Loan Modification?

  1. cas says:

    screw short sales just walk away and let the banks and fannie and freddie eat the loss! They caused this mess and they like modifications to work one way…in the banks favor. Hell even timmy boy geithner said these programs are all about “foaming the runway” for banks and helping them do forclosures in a more managable way. That guy obama sure turned out to be a snake in the grass. This problem is going to cripple the mortgage market for decades.

  2. Santa Maria Short Sale Agent says:

    Hi Cas – Of course I disagree. Walking away will hurt some homeowners. In CA, those with home equity loans that they took out after purchasing can be pursued after foreclosure. Also, there is some light in the tunnel as people who short sale without a missed payment can turn around (with some restrictions) and buy another property immediately with FHA financing. I understand your anger, but it underscores the need for borrowers to get professional advice before missing payments or deciding to walk away. Why make the situation worse than it has to be for the individual? Tni

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