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Matt’s Take On the News
October 13, 2011
Life After Modifications
This an interesting article with a simple twist. The article points out that a high volume of people that are denied loan modifications are being offered short sales and or deed in lieu. On the outside, it would appear that the bank is making an effort to help homeowners by offering alternatives to foreclosure. For those that can’t afford the house (no matter what modification amount is), short sales can make sense. Rarely, will a deed in lieu help (which is one of the many reasons why foreclosure defense attorneys are essential for seller representation………if the fine print in deed in lieu is not read correctly, it functions as a foreclosure…it’s just cheaper than a foreclosure for the bank).
The twist involves people that can actually afford their house if their mortgage is modified. A deed in lieu or a short sale won’t help these folks. Instead of focusing on solutions that don’t work, why don’t lenders focus on solutions that do work?