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Loan Modifications are a result of a Short Sale Application quite often

*Disclaimer: this is not legal advice, I am a Realtor, specializing in Short Sales and helping borrowers get out from under their debt at the best possible terms.


I listed a Short Sale a few weeks ago, and it was heavy on my heart. Quite frankly, the property was not typical of a distressed property, it was cute little Ranch on a sprawling 5 acres, gorgeous Maine countryside.

The sellers had been battling for a Loan Modification for several months with BOA, needless to say they were given the proverbial runaround and were left just hanging in the void. They contacted me because they wanted to do the right thing and not walk away, but get some solace and possibly a $3000 relocation assistance fee in the process. They gave up all hope of a loan modification and just wanted to close this chapter on their life and move on.

I listed the property and received 5 offers in the first week, 2 full price offers. A great short sale!

On the day I was to present all the offers, the sellers called me in shock and excitement….a FedEx envelope arrived on their doorstep that morning and in it was the Golden Ticket. It was a permanent loan modification agreement at a payment that was affordable to them.

Obviously, they wanted the house off the market, which I gladly obliged, and they were grateful for the services but dumbfounded that it happened this way.

It may have been fate or coincidence, however another more rationale explanation may exist. The new HAFA program sponsored by the government, required a lender to first look at Loan Modification possibility before approving a short sale. Perhaps it was the initiation of the Short Sale through BOA’s equator that reopened the book on my client’s Loan Modification application?

When in doubt, don’t walk away. If your hopes of a loan modification are waning, go the short sale route…as it will buy you time and potentially get your loan mod application in the right persons hand.