Short Sale Tip of The Week 8-19-09

Posted on 20. Aug, 2009 by ctlms in Short Sale, foreclosure

Loan Modifications.  How can they benefit the Realtor?

So it has been two weeks since my last post.  I have been very busy with all my existing and new short sale and loan modification customers.  So I thought that this week I would talk a little about loan modifications.

Along with short sale processing I also offer loan modifications to my clients.  Not everyone in financial distress wants or needs to sell their home.  Or at least they have not come to the realization that they need to sell.  Many have tired the Making Home Affordable options and been very disappointed by the results.  Some people who would qualify for a loan mod the "old fashioned" don't qualify the MHA way because the guidelines are black and white and there are no exceptions.

This is where our loan modifications come into play.  Homeowners that can save their homes deserve a chance to do so.  Those homeowners that cannot save their homes but haven't realized it yet need to SEE it for themselves.

You may have past clients call you and ask if you know someone that can help them.  They may already be behind on payments or may have just lost a job and will soon be behind.  There are many scenarios that can happen.  But if you are successfully able to point them in the right direction, they will love you forever.  Plus, if they later determine that they cannot afford the home any longer, they will surely call you back to list the house and at that time they will probably need a short sale as well.

Many agents that we work with for the first time tell us that until they found out about us, they would just tell their leads that they were unable to help them because they owe more than their homes value.  With the help of our service they are able to make that lead a client and eventually close the transaction and get paid.

So knowing where to direct your clients that are not yet ready to sell is just another tool in your belt to assist your clients.  Unfortunately most people do not qualify for loan modifications.  But the homeowners need to see the documented reasons why they cannot afford the home on paper before they come to the realization that they have no choice but to sell in order to avoid foreclosure.  Most people have never before filled out a budget on paper and seen where their money actually goes.  For those that do qualify for a loan mod, they have a new chance to get back on their feet.  And you know who they will call when they are ready to sell?  You.

In case you are wondering, we do not charge a client to determine if they have a chance at a loan mod.  We have them fill out a detailed financial questionnaire and we get back to them within 48 hours and let them know if it looks like their is a chance at a successful loan mod.  If their information makes it clear that they will not qualify, we let them know why and suggest that selling may be a good option.  Most homeowner facing possible foreclosure do not have months to wait around only to find out they never qualified in the first place.  By that time it is probably to late to avoid foreclosure.

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