Selling your property AFTER doing a loan modification! IMPORTANT!
SELLING YOUR PROPERTY AFTER DOING A LOAN MOD!
The good news is for whatever reason you successfully did a loan modification, hopefully got your payment reduced, maybe a principal reduction and were able to keep your property. BETTER NEWS is the real estate market has improved. The property has gone from upside down to having equity and you are ready to sell! You are in position to move up, get money and possible purchase another property OR you NEED to sell to get out of debit and/or the struggle to keep the home. Here comes the challenge.
We are seeing properties that successfully did loan modifications having EXCESSIVE payoff’s when they sell their homes! What does that mean? Well lets say you did a loan modification a couple of years ago and you have been making on time payments since. You check your mortgage balance on line, even call the lender and YOU KNOW your balance to pay off your loan is currently $250,000. Well we are seeing that when ESCROW orders a demand statement from your lender it goes to another department and the demand statement comes back HIGHER than what the homeowner was aware of and if your real estate professional is unaware of how to check that in advance you may HAVE TO SELL YOUR HOME because you are obligated to buyer! Unfortunately you will hear of more stories like this. We have experienced this on several transactions this year and I am willing to bet your will hear a lot more!
If you are considering selling your home, make sure your real estate agent is aware you previously did a loan modification and he or she takes “EXTRA” steps to look into your actual payoff PRIOR to putting the home on the market. If you have questions or want to discuss your situation contact us direct email@example.com or 661.290.3781