Is a Loan Modification a Prolonged Foreclosure?

It's tough to convince someone to get foreclosure help when they are going through the process of losing home the hopes of saving their home and trying to work with banks are not taken seriously at first.  Many people get into the mode where they procrastinate for a long period of time. This mode of action will hurt you in the long run. 

The number one option of working with someone who has fallen behind on payments is through a loan modification.  This is where you contact a loan or Mortgage professional and modify you loan by restructuring the payments and terms of the loan.  Often times people will get a loan modification thinking that things are ok only to find themselves right back in the same situation they were in when they began the modification process. 

It is the job of the loan professional to explain to the homeowner the terms and condition of the modification.  The average person thinks that by modifying the loan the home is saved, but the conditions of the modification and monthly mortgage payments must be paid on time in order for the terms of the loan modification to stay in effect. A loan modification is a type of foreclosure help or payment restructuring that can help people, but it must be fully explained by the loan professional.

What many people need to consider is first and foremost their income.  If you income has suffered due to job layoff or a rough economy and in the near foreseeable future no income is being generated, then you may want to to talk to a Real Estate Professional about doing a Short Sale on your property.  Simply put, a short sale is a process where a Real Estate Agent or Broker negotiates on your behalf to the bank to sell the property short of what is owned.  

Take into consideration you set of circumstances in a logical sense. To look at your situation emotionally often times can get you into more trouble down the line.  A word of advice, If you are in the process of foreclosure and have not made a payment then consider staying in the home until a representative from the bank or a appointed real estate agent has contacted you and asked you to leave the property.  

If you are one of the unfortunate people going through this process please remember that there is foreclosure help out there. Just make sure the person you contact is interested in helping you and not themselves.

So, do you think Loan Modifications work?