Loan modification meltdown: Do you feel lucky? | Austin, TX
As if the economy wasn't stressful enough, I imagine it must feel much worse if you live in a home that is worth less money than you paid for it.
Maybe you or your spouse lost their job recently. Maybe one of you switched jobs and are making significantly less money now. Maybe there has been a death in the family, and the bills are piling up.
Loan modifications are certainly in the news. And there supposedly are many new government-sponsored programs that give "incentives" to the lenders so they will help you.
But heed this warning: Loan modifications are rare. And often they are temporary — meaning your old loan terms could return in a year or two. A lot of times, the past-due amounts are not forgiven, but are simply added to the end of your loan.
Talk to a lawyer or mortgage professional to make sure a loan modification makes sense for you before you attempt one. And watch out for companies that offer to help you get a loan modification, since some of them are not legit.
If you decide to sell instead, but you owe more to the lender than your home is worth, I might be able to help you get your lender to take a lesser amount, and get your home sold for you. I am Agent Aaron, a licensed Texas real estate agent. Call me at 512-845-4204 if you have any questions.