Loan modification or Short Sale! Which one is beneficial?

Foreclosure

We hear about thousands of homes going in foreclosure every day. Imagine how many home owners would be living under a constant threat of foreclosure and how many would have already faced the trauma of being thrown out of their homes. It can be agonizing, beyond comprehension, to lose one’s home, and at the same time, face social humiliation combined with bankruptcy and a damaged credit. To recover from this onslaught, can be real challenging, especially in the event of the existing economic crisis. About a year ago, when the foreclosure graph started rising, the mortgage brokers evolved a strategy of making a lucrative business out of it. They started convincing home owners to find a buyer for their property (due to be foreclosed) and plunged into a cumbersome process (on behalf of the owner / seller) of negotiating a short sale with the Lender / Bank in respect of the property. Soon enough, the Banks realized that the Brokers should be kept out of the picture, as they were reported to have misguided the home owners in several cases. After all they felt that there was no big deal in making a ‘killing out of a shipwreck.’

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