I got a call on Monday. The caller said "Peggy, I think I need to sell my home by short sale. Can you help me. " I asked what's going on.The caller explains that he had been working with his mortgage company for over ten months to modify his mortgage. The gentlemen lost his job last year. He is now working again however they are struggling trying to make ends meet.
Long story short, the bank returned a loan modification agreement in August 2010 and the payment was only reduced by a measly $100 a month! Yes you read that correctly, Ten month of faxing, federal expressing, emailing and communicating with the bank and the loan modification is a trial loan modification a reduced payment of $100 a month. 
Now let's add insult to injury. The bank tacked on all the late payments, accrued interest and fee's and more than $30,000 was added to the back of the homeowners mortgage!
Now I ask you? How is this helping the distressed homeowner? It didn't.
So the caller said he was mad. "I bet he was mad!"
Unfortunately for him he received some bad advice. He thought if he didn't pay the payment they would listen to him. Folks, he signed loan modification paperwork. These are typically trial periods.
What happens next will scare the life out of you!
Fast forward to this Thursday. He finally realizes after interviewing several Realtors®,(including myself) that a Short Sale is his best option. He calls his bank to authorize his Realtor® of choice and the bank says, your home is scheduled for Foreclosure Auction Sale on November 29th . Sir you didn't pay your trial modification payment. You missed October payment and your November payment is already late. Sir, there is nothing we can do. Even if you got a full short sale package into us now with a ratified contact, it takes a minimum of thirty days to upload a new short sale requests into our system. Sir, your house is going to be Foreclosed. He asked for a dollar amount they need to stop the foreclosure. She said, it's to late for that. You are out of time.
The family is in a panic and seeking legal advice from a top foreclosure attorney in our area.
FOLKS DO NOT WAIT OR THINK YOU CAN HANDLE THE BANKS ON YOUR OWN.
A Short Sale is a very good option for many who are in distress. You can recover from a short sale. You will need to rent for a few years, however you should be able to buy another home in the future.A foreclosure can affect everything for years to come and prevent you from owning a home for a long, long time. Please understand it takes time to sell your home. Don't wait until the sheriff is at the front door knocking to call a Realtor®
I'm only a phone call away, I've been helping homeowners in the Woodbridge area for decades, if I can't help you I will help you find someone that will. Let's talk call me 703-851-3085 or contact me by email 
Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office).If you are a homeowner who has a home to sell, we have buyers ready and waiting for nice homes to come on the market. Give us a call and we can "GET YOUR HOME SOLD FAST" to list your property for sale we service Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Manassas Park, Haymarket,Montclair, Dumfries, Occoquan, Dale City, Gainesville, Aquia Harbor, Garrisonville and Triangle area's .
Find out what's for sale today in Woodbridge Virginia Click here
Have an iPhone or iPad...you are going to love the FREE APP. Use it while you are driving neighborhoods you like! It's an awesome tool!
11360
Do you need help? Have a question?
Just ask me peggy@erickandcompany.com
You can follow me on Facebook
Contact Peggy James or Erick Blackwelder of Erick and Company of Exit Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085(Peggy) 703-590-2252 (Office).Give us a call and we can "GET YOUR HOME SOLD FAST"to list your property for sale we service Woodbridge, Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas,Gainesville, Garrisonville and Triangle area's.Basically all of Prince William County Virginia. Manassas Park, Haymarket,Montclair, Dumfries, Quantico, Fort Belvior, Occoquan, Dale City.
I've seen a servicing agreement that states that the bank servicing the mortgage will receive 25% of all proceeds when the home is foreclosed and sold. Seems like the servicing banks might not really have any interest in seeing the modification work, quite the opposite, in fact.
Typical example of what is happening out there.. banks do not care except for their bottom line
Eric, thank you for posting your comment. The homeowners in distress think that people on the other end are listening and trying to help. They're not.
Fernando, I agree. In the example above the homeowners interest rate was in the mid seven percent range. Surely the mortgage could be reduced a bit to help homeowners. There is not incentive for banks to do that.
It is a sad situation when homeowners are trying to get things back on track and they get this shocking news. All homeowners need to understand that they need our help and they need to act quickly before things get to foreclosure. If one modification payment is missed by one day they are in serious trouble just like they were before the modification began. Hopefully homeowners will read this post and respond to help themselves.
This story needs to be read by all to understand what is happening in this Country. This writer speaks about a non-judical process in Flordia but it is happening across the country.
http://www.rollingstone.com/politics/news/17390/232611?RS_show_page=0
And Look what Wall Street and Washington Intend to do about it..
http://livinglies.wordpress.com/2010/11/11/pardon-livinglies-obtains-wall-street-playbook-mers-to-be-legitimized-by-act-of-congress/
So sad but so true. It makes it even more difficult because the group doing the loan mods never communicates with the group pursuing foreclosures.
That really is a cruel joke. I hope you are able to help them, keep us posted.
Update...this homeowners emailed me over the weekend. The attorney did some checking and found fraud in this homeowners paperwork. The attorney he went to, believes he can stop the foreclosure to allow the seller time to short sale or better force the bank to work out a better modification!
I am so releived for this owner....
Don't wait..if you are in trouble, or feel something is wrong call a local Realtor. Fight if you think the banks are doing you wrong!