THE TRUTH ABOUT LOAN MODS

62% of Loan Modifications Redefault if the loan is current

83% Redefault if the loan is already delinquent

 stat quoted from http://realtytimes.com/rtpages/20090709_loanmod.htm

So why are the lenders running to get loan mods done for you?  Could it be the lenders receive free government money for these mods? And where does the government get the money to give away?  There are a lot of questions that need to be asked and answered.   But for now let's simply focus on the homeowners who are in real trouble with their mortgages.

The loan modification process takes many months of providing documentation and sometimes you are required to resubmit docs again and again.  Hundreds of thousands of loan mod files are piling up on the desks of the lenders.  They are aware that a majority of these files will result in a redefault.  So are these loan mods helping homeowners or just the lenders who receive government money to allow this mods to happen? 

Please consider carefully this process before you continue to pour your money into your investment.  To those who are realistic about your expenses and a loan mod will work for you then congratulations!  But, if you really cannot afford your home, perhaps there is a better choice than a loan modification.  Consider short selling and starting over.  You can get more information about short selling on this site or by contact me personally.