All Loan Mods Lead to Short Sales, Then Bankruptcy

September 4, 2010: Loan modifications work; but not forever. Most homeowners go to sleep every night, for as long as they are “in modification”, wondering if they would be better off selling their home short. After they sell short, the homeowner often files bankruptcy.

In fact, so many loan modification homeowners eventually sell their house short and then file bankruptcy that real estate brokers are known to buy a loan modification company’s customer list and try to convince those customers to do a short sale; and after the short sale, lawyers are known to solicit those same customers to file bankrutpcy.

So its one, two, three: First, modify your mortgage loan to buy time; second, sell your house short to get rid of the problem causing home; and three, file bankruptcy to eliminate the lingering debt.

Published by Stout Law Firm

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