I have a severely underwater property with two mortgages. I am trying a loan mod with the first mortgage. Should I try a loan mod or ss with the second smaller mortgage. The first and second have different servicers. The property is in foreclosure in Florida with no sale date. I welcome any suggestions and feedbacks. Thanks!
If you are under a loan modification with the first, you cannot do a short sale with the second as that means that you will be selling the home. I would work on a loan mod with the second as well.
The Federal Housing Finance Agency has launched a new loan modification program for Freddie Mac and Fannie Mae loans. It is called the Streamlined Modification Initiative. This program is placed in the hands of the lenders allowing them to be proactive in helping borrowers obtain mortgage relief.
The program begins June 1, 2013 and will remain active until August 2015. It is available for borrowers on Freddie and Fannie loans who are 90 days or more delinquent on their mortgage.
Borrowers will not have to submit proof of hardship or financial documentation. There is not an extensive underwriting to qualify. Plus, lenders can initiate the loan modification. This means that delinquent borrowers could receive correspondence from their bank saying they want to help their client rather than foreclose on them. What a nice change from HAMP and HARP!
The effect on credit scores will be similar to the effect for a foreclosure.
I am not a fan of short sales nor of loan mod agreements. They are nothing short of fraud by the banksters to engage one in a new contract, which creates new lines of credit for the bank through fractional banking. Both of these will be losing strategies for the home owner in that one would need to pay the tax bill on the shortage in the tax year of the agreement.
There are strategies to stop the foreclosures that are beyond the scope of a typical forum conversation however if one attempted to reach me through this venue, I could offer sample documents to consider in resolving those issues.
Hope this helps.