·Loan Modification to Short Sale/Foreclosure Timeline · It is recommended that you apply for a Loan Modification before you are 30 days late on your mortgage payment. If you are already late you must to the following to avoid foreclosure: · Application for loan modification is mandatory if you wish to avoid foreclosure. · Your loan modification application will take approximately 30-90 days to approve or deny. · Notice of default (pre-foreclosure) is filed after your first 30 day late, regardless of your loan modification application. · Even if you are trying for a loan workout the foreclosure clock is ticking and you must consider going to the Short Sale process in order to stop the foreclosure proceeding in the event that you are denied loan modification. · List your house for short sale at the same time you try to modify. Hopefully a sales contract will be submitted to the bank for approval. You do not have to sell your home if your loan modification is approved. The contract will cancel. . · Bank will begin to foreclosure after 90 days unless an agreement to postpone sale is negotiated by your Realtor® after receiving an acceptable offer. · By completing a short sale rather than allowing your house to go through foreclosure, you avoid eviction and your house will not be sold at a public sale or auction. Plus, depending on your circumstances, you could qualify for financial assistance to help with relocation costs (cash for keys). · The entire process from loan modification application to short sale close of escrow can take up to 6 months during which time you can continue to live in the property. |
Realtor®,Short Sale Specialist, Foreclosure Alternatives
