Should my friend attempt a loan mod or do a short sale?

[fredo4]

I think we’re long past the point of entitlement being an issue. As we’ve seen, the system is set up to cater to the least responsible people in society (which they aren’t). And as far as a market-based approach is concerned, her husband, a computer software designer, should be able to find another well paying job soon. I know that banks aren’t really excited about getting any new inventory that they’ll have to later unload. So, while I’m no expert, it seems like she might have a good chance on getting a loan modification. I’m wondering what sd and SD’s (realtors) opinions are on this, since I’m sure they see it everyday.

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[permabear]

Well, either way they have to miss payments to get the bank’s attention. So why not just start missing payments and see how long it takes for the bank to contact them and attempt foreclosure. The current average is 492 days, as insane as that is:

http://dailybail.com/home/national-average-492-days-from-default-to-foreclosure.html

Between the massive loss the bank would have to write down on that property, plus the slow process made slower by the robo-signing fiasco, they might get 2-3+ years of no payments. I would stash the mortgage money in a savings account, and if the husband finds new work, try a loan mod then. Otherwise enjoy living for free!

[permabear]

Well, either way they have to miss payments to get the bank’s attention. So why not just start missing payments and see how long it takes for the bank to contact them and attempt foreclosure. The current average is 492 days, as insane as that is:

http://dailybail.com/home/national-average-492-days-from-default-to-foreclosure.html

Between the massive loss the bank would have to write down on that property, plus the slow process made slower by the robo-signing fiasco, they might get 2-3+ years of no payments. I would stash the mortgage money in a savings account, and if the husband finds new work, try a loan mod then. Otherwise enjoy living for free!

[permabear]

Well, either way they have to miss payments to get the bank’s attention. So why not just start missing payments and see how long it takes for the bank to contact them and attempt foreclosure. The current average is 492 days, as insane as that is:

http://dailybail.com/home/national-average-492-days-from-default-to-foreclosure.html

Between the massive loss the bank would have to write down on that property, plus the slow process made slower by the robo-signing fiasco, they might get 2-3+ years of no payments. I would stash the mortgage money in a savings account, and if the husband finds new work, try a loan mod then. Otherwise enjoy living for free!

[permabear]

Well, either way they have to miss payments to get the bank’s attention. So why not just start missing payments and see how long it takes for the bank to contact them and attempt foreclosure. The current average is 492 days, as insane as that is:

http://dailybail.com/home/national-average-492-days-from-default-to-foreclosure.html

Between the massive loss the bank would have to write down on that property, plus the slow process made slower by the robo-signing fiasco, they might get 2-3+ years of no payments. I would stash the mortgage money in a savings account, and if the husband finds new work, try a loan mod then. Otherwise enjoy living for free!

[permabear]

Well, either way they have to miss payments to get the bank’s attention. So why not just start missing payments and see how long it takes for the bank to contact them and attempt foreclosure. The current average is 492 days, as insane as that is:

http://dailybail.com/home/national-average-492-days-from-default-to-foreclosure.html

Between the massive loss the bank would have to write down on that property, plus the slow process made slower by the robo-signing fiasco, they might get 2-3+ years of no payments. I would stash the mortgage money in a savings account, and if the husband finds new work, try a loan mod then. Otherwise enjoy living for free!

[patb]

[quote=fredo4] As we’ve seen, the system is set up to cater to the least responsible people in society [/quote]

That would be the Drooling, morons of Wall Street.

[patb]

[quote=fredo4] As we’ve seen, the system is set up to cater to the least responsible people in society [/quote]

That would be the Drooling, morons of Wall Street.

[patb]

[quote=fredo4] As we’ve seen, the system is set up to cater to the least responsible people in society [/quote]

That would be the Drooling, morons of Wall Street.

[patb]

[quote=fredo4] As we’ve seen, the system is set up to cater to the least responsible people in society [/quote]

That would be the Drooling, morons of Wall Street.

[Author]

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