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Should I Loan Mod or Short Sale My Northeast OH Investment Property

Northeast OH – The Stop Foreclosure Institute recently received a question from Kristine.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here was Kristine’s Question. “I bought a condo in 2005 and have never been late on a payment. My husband and I have been renting out this property for less than we pay on it.

We had hoped that the market would turn around, which it hasn’t. The current renter has fallen behind on rent in July and will be moving out at the end of the month.

In turn we are struggling to pay our own bills. We have done all we can to keep our finances afloat. But, it has gotten to the point that our savings are drained and we cannot afford this condo anymore.

I heard that doing a short sale may be in good interest for someone in my situation. The loan I have is a VA loan and I hope I will not mess my future VA loan privileges up by doing this.

However, we simply cannot afford to pay our current mortgage and all of our bills with this condo hanging over us. Please let me know what you recommend that we do. Kristine.”

Here was our recommendation to Kristine. A short sale would be beneficial to you. Let me explain why.

Currently you are losing money every month. In addition, the economy has caused you to use up all of your savings. But, this condo is still costing you money every month.

If you short sale it, then you will not have to repay VA or your lender any money for the loss. However, you will not be able to get another VA loan in the future until you repay VA for the loss.

Here is the bigger issue. A VA loan gets you a half a percent better interest rate. If you get another loan for $200,000, then that will save you $20,000 over the life of the loan

I do know that the area you bought your condo has experienced significant depreciation. Your condo has dropped in value by $120,000.

I would prefer to write down $120,000 in debt and take the temporary credit hit. Your alternative is to continue limping along losing money each month until you miss enough payments that the bank forecloses on your condo.

Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at iandymorris@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (440) 348-5500

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Northeast OH loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Andy Morris.

Andy is a Real Estate Broker at Realty Trust Services. Northeast OH Short Sales Realtor:

Phone: (440) 348-5500. iandymorris@gmail.com.

View My homes for sale at www.rtserve.com.

Andy Morris specializes in loan modification assistance and short sales in Northeast OH. Northeast OH Modification Help, Northeast OH Short Sales, Northeast OH Short Sale Realtor, Northeast OH Short Sales. Northeast OH Realtor, Northeast OH Stop Foreclosure, Northeast OH Foreclosure Prevention, Prevent Foreclosure Northeast OH, Northeast OH Foreclosure Defense, Northeast OH behind in Payments.

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