When to switch from a loan modification to a Short Sale . . .

If you are attempting a loan modification ask yourself this question. When is the last time you made a mortgage payment? If you have not made a payment in three to four months, you should have enough money saved to take on your new modified payments at the end of the process. If you still do not have enough money to make a single payment, that means that even if your loan had been reduced to 25% its likey you still could not afford your home.

At this point even a reduced payment may be just delaying the inevitable. The bottom line: If you have had a permanent change in income, and have not had success in finding a job to replace that same income in over 6 months, you may be just putting water in a bucket with a hole in it!

Short Sales allow you to honestly sell your home, and begin to rebuild your credit more quickly. Many of the government loan programs are already making guideline changes to accommodate future lending to those who have rebuilt their credit in as short as three years!

Renting does not have to be a sacrafice! There are many affordable rentals on the market, with many if not more, of the upgrades you already enjoy. Often when a home owner cannot sell they turn to a property management company if they can afford to keep their home until the market changes. A great rental will also aid in rebuilding your credit history.

Do not be afraid of the short sale status! This market has changed the outlook of many peoples lives, and it is important to remember that credit can be rebuilt and that you can be a homeowner again! Don't be discouraged! A short sale can be the first step to regaining control of your financial future. For more information on Short Sales and Loan Modifications please visit my website at www.equitynegotiations.com .