When Is A Knoxville Loan Modification Not A Good Option?

knoxvilleshortsalequestionsFor Knoxville homeowners facing foreclosure, a loan modification can seem like a good option. A homeowner can remain in their Knoxville home and get back on track with their payments.  Unfortunately, a large percent of loan modifications fail; with a recent quarterly report from Congress showing 27% of all completed loan mods end up in redefault. While a Knoxville loan modification can help you avoid foreclosure, it is not always the best solution for everyone. If you're thinking about completing a loan modification, here are a few situations where a loan modification is not a good solution. You're Deeply Underwater In some cases where a Knoxville homeowner is deeply underwater, a loan modification isn't always the best option. It's more of a band-aid for a bullet hole than a foreclosure solution. While a loan mod can make you're payments more bearable, it doesn't change the fact that you owe more on your home than it is worth. You're Income Isn't Stable Obviously, for a loan modification to be successful, you need to have stable income. There is no use jumping through all of the hoops to save your Knoxville home if you won't be able to keep making payments. The Knoxville Home Doesn't Fit Your Needs A Knoxville loan modification can help make you keep you Knoxville home, but if it is not a home than you plan stay in, a loan mod might not be worth it. If you're underwater on your home, it could take a few years to build the equity and for prices to rebound. If you plan on moving in the future, a loan modification could just be a temporary fix. You may be better off to complete a short sale and get rid of the home while you can still take advantage of the Mortgage Forgiveness Act. Are you facing foreclosure on your Knoxville home? If so, please let me know if there is anyway that my team and I can assist you. You can give us a call at 865-696-9002 or send an email to [email protected]. Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page. We’ve helped many Knoxville homeowners avoid foreclosure on their Knoxville home.

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