Short Sales & Loan Modification Information

When you cannot make ends meet because of a mortgage that is no longer within your budget, you have a few options:

  1. Short sale the home, whereby (You, a Realtor, and or an Attorney) and the bank will negotiate a deal allowing you to sell your home for less than you currently owe the bank. In order to short sale your home you must work with a license Realtor.
  2. “Deed-in-lieu of foreclosure. Deed in Lieu allows you to avoid foreclosure by voluntarily transferring ownership of your property to your lender which may satisfy the total amount due on your first mortgage. This step can help you avoid a public sale or auction and may help you start rebuilding your credit score sooner than going through foreclosure. However your credit will take a huge hit with this step but not as bad as foreclosure.
  3. A Forbearance, whereby the lender reduces or suspends your loan payment (usually up to 90 days).
  4. Renting the home. Find a tenant who will rent your home and use that money to repay the lender.

Loan Modification and Short Sale Programs

  • HAMP: is a loan modification program that helps troubled homeowners by reducing their Mortgage payments so that these payments are 31% of their pre-tax monthly income. In my pass experience loan modification is a very long drawn out process with little success. However I would not discourage to go that options, but just be prepare.
  • HAFA:Government-sponsored program that allows homeowners who are short selling to receive $3000 in relocation assistance. Go on line to see eligible program.
  • HHF: Florida Hardest-Hit Fund is the official website for the HHF program. 877-863-5244 toll-free
  • HHF-PR: Florida Hardest-Hit Fund Principal Reduction.

The application for the Florida programs is free of charge. For eligibility criteria visit

Beware of refinance scams and loan modification scams on line. You will want to go to the above government sites to help you with the information regarding your loan. Also go to Never give anyone money or your personal information to anyone on line. There are no application fees to start a loan modification or short sale or any other programs that may be offered to you. Please be aware of non-government sites on line. The above information is all government sponsored sites.