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Loan Modifications Los Angeles: Why short sales can make good credit rating sense

Homeowners struggling to make their monthly mortgage payments may fear more than losing their home through foreclosure. With Loan Modifications Los Angeles CA pointing out that when loan modifications don't work (and most of the accepted loan modification appear to fail within a 12 month period) they are left with foreclosure and the knowledge foreclosure CA will have on their credit rating. Thankfully there is another option for homeowners in financial distress, and that is a Short-sale whereby the property is sold for less than the value of the balance owed on the property loan.

Short sales can make sense -

"With a short sale on your credit, you'll lose 100 to 150 points," said Dallal, who is also a licensed real estate broker. "But with a foreclosure, you'll lose about 300 to 350 points on average, and a foreclosure stays on your record for seven to 10 years."

But why should a family go through the stress of going through a short sale as opposed to working with the lender to obtain a loan modification CA? In truth, the loan modification Los Angeles process can be a long drawn out and stressful process, especially when the homeowner works in good faith with the lender only to find the loan modification Los Angeles is still not affordable to the distressed homeowner causing the homeowner to default on the loan modification CA payments. Or the homeowner goes through the loan modification process and is turned down by the lender, leaving the homeowner with fewer options. Whilst foreclosure CA may seem like a valid option, a short sale allows the bank to immediately recoup some of its investment on the home whilst giving the homeowner some degree of control over the process.

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Short sales seem to make good sense.

June 29, 2010 | Unregistered CommenterMichael

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