Lender Denied My Loan Modification and I Don’t Want to Do Short Sale –What Other Option I have to Avoid Foreclosure?

I had received a call yesterday from a nice homeowner, who found out my information from the internet (Google) search and told me that his lender denied his loan modification and suggested to do short sale, but he doesn’t want to sell his house.

The reason why the loan modification got denied is because of his income reduced 6 months ago and his expenses are way more than his income.  The value of the house also decreased more than 34% and cannot sell for profit.    

I know it is a tough situation for him and his family to sell his house and move to rental place.  I can totally understand why he doesn’t want to sell his house, but if cannot qualify for loan modification and cannot pay his mortgage payment and what other options he has other than to sell his house to avoid foreclosure.  Yes! if he doesn’t want to sell (short sale) his house then that’s fine but how long can he live in that house without paying the mortgage? He has to face foreclosure in the very near future and at that time they have to move out or lender will evict him and his family.  

I know it is hard to let it go but you have to face the realty and move on with your life. It is not healthy to stress it out for something out of your control and it is only a house, you can buy another house in couple of years when everything will be ok for you. Your family and health comes first. After short sale, you can qualify for another loan in 2-3 years.

So, my suggestion would be if anyone is in this situation then don’t fight too hard when you know you cannot qualify for loan modification, just do the right thing and move on with your life. Life is to enjoy, so spend your precious time with your family and trust God that whatever happens in your life is for good, he has better plan for you in the future.

Consult with your tax professional or attorney before you do short sale. If you have any questions on short sale, feel free to send me an email or call me at 510-366-9405.

Similar Posts:

• I’m Getting Divorce and Cannot Afford to Pay the Mortgage
• Should I Do Loan Modification Or Short Sale?
• I Have Received Notice of Trustee Sale, Can I Still Qualify for Short Sale?
• What are the Common Things in a Short Sale Process?
• I am Paying My Mortgage Payment From My Savings And Credit Cards

Tagged as: Options to Avoid Foreclosure