Short Sale vs Foreclosure vs Loan Mod - What is Best?

Despite talk of an improving economy, many homeowners are still navigating rough waters. Many owners of real estate either purchased or refinanced with dangerous loan terms. These loans which appeared to be a good deal turned into hellish payment terms. For many their payments moved up and their home value moved down.

Some real estate owners sought bankruptcy protection. Others tried to get loan modifications. But if you are a homeowner in financial trouble considering these two options, there is another choice which may offer a better solution. The federal government offers a variety of solutions for the average consumer! Its true! You may actually be able to receive your own government bailout.

Programs available include:

Loan modification counseling for FREE! Those who qualify can receive reduced mortgage payments. If you are a veteran, the VA will provide assistance, even if you do not have a VA loan. If you are not a veteran, you may want to contact HOPE (link below article) which will provide free counseling and loan modification assistance.

Refinance into a government inured home loan. FHA and VA loans are available to those who qualify. If you have been current on all debt except your mortgage, you may be eligible. These loans offer low, fixed interest rates and easy qualifying.

Finally, you may want to consider helping yourself and a Veteran. VA HLC is seeking homeowners who are willing to sell their home to VA buyers. If you use VA HLC to short sale your home, you will not have to pay any commission or fees. Eligible buyers are returning home after serving in the war. These buyers are looking to purchase homes but many sellers do not want to work with veterans.

In an effort to make the process easy, VA HLC will offer free short sale counseling. VA HLC will bring you a qualified buyer and you will not have to pay anything for the service. In fact if you use VA HLC for your short sale representation, you may qualify to buy again with a VA HLC loan in as little as 2 years. Many people are eligible for this even though they have not served in the military.

Among the advantages of selling with a short sale is the ability for you to live rent free while you are short-selling. The short sale process may take up to a year. If you are actively short-selling most lenders will not foreclose during this time. A short sale also looks better on your credit report. Unlike a foreclosure or bankruptcy the debt will be paid off. Lastly, if you use a short sale, you qualify to purchase a home faster than with a bankruptcy or foreclosure.

If you are a homeowner considering bankruptcy or foreclosure, speak with a VA HLC representative to learn about all of your options first. The call is free but the information may save you thousands!


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Philip D Georgiades II is the CLS for VA Home Loan Centers San Diego Center.
Right now, there are free government assistance programs for home owners who are experiencing problems making thier mortgage payments.
To get VA home loan info and/or apply, or free loan mod counseling, or short sale guidance, visit VA Home Loan Centers or email info@vahomeloancenters.com