What Do You Do When a Loan Modification Fails?

So after all the expert advice I have given you from this article, you have finally done the unthinkable and contacted your bank about getting a loan modification. After some struggle, headache, and jumping through a few hoops, they had finally agreed to modify your loan. You were ecstatic. But now it has been six months and you have still not gotten a final answer to your modification. Or you had another setback which caused you to fall out of the modification plan that your bank worked out for you. So what are your options now?

If you are in this situation then you may really feel confused. If you have read recent news reports than you have seen that about 40% of the people that have gotten into a modification plan under the President Obama modification plan have fallen out of the plan.

So that leaves a lot of people facing hard decisions. Here are a few options for you.

First option you have is to go back to the bank and explain why you had a problem with your modification and what you are able to do in order to fix your new problem. Banks at this point in the game are open to listening to you and the fact that you already had a modification shows that you are interested in trying to keep your house. In some cases they will put you on a new modification plan and in other cases they will reinstate your old modification.

Your second option is to consider selling or short selling the house. I always tell people to consider this option when their situation does not seem like it can get any better any time soon. Such as a long-term layoff at work or a death in the family which results in a lower overall income.

Many families are concerned about selling a home because they would prefer not to rent and feel they will not be able to buy. My answer to that would be to consider a bridge between the two and to take a look at renting to own. Programs like ours allow you to rent while still keeping many of the benefits you receive with ownership.

Arthur V. Veal IV is the owner of We Buy Houses Home Services, a real estate investment company. They specialize in selling houses with owner financing. They have sold hundreds of houses to deserving families that were not able to get bank loans at the time. His company boast an 83% success rate when helping their buyers refinance the house that they get owner financing on. Find out more about there programs by visiting their site at http://www.ownwithnobank.com