The Secret Truth Behind Loan Modifications

If you’re stressing over making your monthly mortgage payments or, worse, are falling behind, it’s time to start looking at your options to get your head above water.

Loan modifications have become a popular option for today’s struggling homeowners – but will they really help?

Loan modifications are often touted as a better option than a short sale. Leigh Brown, a short sale expert in Charlotte and a short sale expert in Concord, knows that this isn’t always the case.

The fact is that, depending on your circumstances, loan modifications can hurt your credit score, perhaps to the tune of 100-200 points. For other people, you may be able to get away with a loan modification with virtually no consequences.

In many cases, a short sale might be your better option. With a short sale, your credit score will go down somewhat, but not as much as a foreclosure and, unlike a loan modification, a short sale is a permanent solution to unaffordable mortgage payments because you will be selling your house.

Sadly, many people have been approved for loan modifications without ever having been told their credit scores would suffer. Even worse, a lot of those people continue to struggle with their mortgage payments and end up having to do a short sale anyway – a double whammy against your credit score. To find out what exactly a loan modification will do to your credit score, the absolutely best thing you can do is ask your loan servicer for a straight answer.

And before you make any decisions regarding loan modifications vs. short sales, make sure you talk to a real estate expert for unbiased information. Leigh Brown is your best Charlotte agent and best Concord agent. She is also a Certified Distressed Property Expert, which means she has the expertise and experience you need to be able to deal with your mortgage situation armed with knowledge and confidence.