Short Sale Steps

Foreclosures, short sales, mortgage modifications and deeds in lieu of foreclosure each have a different affect on your credit. Exactly how mortgage late payments, foreclosures, short sales and deeds in lieu affect your credit really depends on your credit history as well as how the lender reports your situation to the credit bureaus.
Foreclosure Labels
A foreclosure [...]

What can be modified?
Principal, interest rate, payments, the length of the loan,
any late fees, attorney costs, accumulating interest and penalties.
What are the Time frames?
Default time frame of two to three months behind in your mortgage payments to qualify. Time frame for response to your modification request can be anywhere from 30 to 90 days or [...]

Most mortgage modifications work this way:
Step 1 Contact Lender
If you think you are going to be falling behind in your monthly mortgage payments by more than one month or you are already two months behind, you should contact your lender immediately. Ask for the mortgage modification department or loss mitigation department. Many of [...]

Sample Hardship Letter for a Mortgage Modification
Hardship Letter:
XYZ Bank
Re: John Jones, 1234 Main Street, USA., loan number 123456789
Gentlemen:
This letter is to advise you that I can no longer make my monthly mortgage payments in the sum of $___________ as I my income has been reduced as a result of the economy and [...]

If you are like so many others of millions of homeowners that are struggling with variable interest rate mortgages that have reset or about to reset and you can no longer afford you’re your currently monthly mortgage payment, then a mortgage modification might be the right answer for you if: your hardship is temporary, and [...]

As of November 2008, nearly 1.6 million borrowers were at risk of losing their homes according to economist Mark Zandi of Moody’s Economy.com. Lots of mortgage modification counselors are stepping in to try and help borrowers save their homes-for a price.
The consensus among the government, industry experts, economists and Realtors is that one of [...]