Central Florida Short Sales

Hi folks. One of the first rules for a Short Sale Broker is to make sure the potential Seller has already tried to do a loan modification if they want to keep their property. Especially if the property is their primary residence. We WANT folks to stay in their homes if at all possible.

A Short Sale should always be the next to the last resort. With foreclosure being the last.

I'm not that familiar with the loan modification process but do know that if the property is an investment property or 2nd home chances are the loan modification will not work. Oh the lender may "modify" the loan but their idea of a modification will be to tack on all the payments you have missed plus late fees and RAISE your payment. I know this because they offered me one of these on two of my investment properties.

After f$^&*ing up my credit I still ended up doing Short Sales on them.

Now if you're are wanting to do a loan modification on your primary home then you may qualify for HAMP (making home affordable). Or at least that's what I hear. Personally I've never spoken to anyone that has had a successful loan modification. Have you?

I will say though that a good loan mod would be the first option. By good loan mod I mean a loan mod with a principle reduction back down to or below market value. If the loan mod does not involve a principle reduction then it is just a postponement of an inevitable foreclosure or Short Sale. The payments are not the problem. It's the negative equity, stupid!! At least that's my opinion. What say you?

Are you facing foreclosure in Florida?