There are many different options for someone looking for a way out of a bad mortgage situation and among these options loan modification seems to sit at or near the top. However, an option for dealing with a home or property that is rarely discussed but overwhelmingly successful is the option of short sale negotiation. But how do loan modification and short sale negotiation differ?

Here are the main differences between a bank loan modification and a house short sale negotiation:

Loan Modification gives the borrower the opportunity to change or “modify” one or more terms of the existing mortgage loan to lower the payment and make the mortgage more affordable. These different options could include but are not limited to extending the loan, dropping the interest rate, forgiving past due payments and fees, or a reduction of the principal interest.

Short Sale Negotiation on a home is what happens when the bank and the borrower work out an agreement to sell the property for less than the amount agreed to in the loan. Instead of the borrower paying this amount the amount is arranged with a third-party that then takes ownership of the house and the borrower is absolved of all responsibility to repay the outstanding loan amount.

Don’t waste any more time worrying about how to pay your mortgage, contact us today by phone at 813-612-5697 or 877-246-4486 or by email at sales@tsherwoodlaw.com.

This entry was posted on Thursday, January 14th, 2010 at 8:41 am and is filed under Loan Modification Info. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.