OK. I am not going to beat around the bush. Banks are more willing to do a loan modification when the mortgage is in default. That is the truth. The issue is this: Should you stop paying in order to get the bank to modify your loan? Well, that is up to you. Doing that is full of risks. It is a bumpy road. At the end it depends on your specific situation.
Strategic Default: This is recently coined term. I did not invent it. Basically it means stopping payments in order to make the bank modify. I am sure that under the right conditions it will work. If you willing to play hard ball, have a good enough hardship, and are willing to raise the stakes, this may be for you. Just be ready to let the house be foreclosed or pay back the arrears if things don’t move in your favor.
Slow Death: This is were the majority of homeowners are at. They sacrifice everything in order to keep their home. They use their credit cards to pay expenses, consume their saving and even retirement funds. At the end, but later, the end up broke and about to be foreclosed anyway. Not only that. Very often, in order to save the property, they advance funds to the bank, and get foreclosed a couple of months later anyway. Let me ask you a question: Do you prefer to be foreclosed and have money, or be foreclosed and have no money?
If you are having problems with your mortgage, decide what to do quickly. I know it is easier said than done. Now you have the facts. Call me at 971-222-3734. I will be happy to help you with a loan mod.
Oscar
