Now that the loan modification fad seems to be on its last rope with all the chop shops going away and the ridiculous expectations that some borrowers were given, it is now time to face reality. Your loan modification has been denied. It may have been denied because there is no program available for your situation or you did not qualify because you did not have enough or had too much income.

If you are having trouble paying your mortgage and you want a solution that has minimal impact on your credit compared to a foreclosure, consider a short sale. A short sale is like the regular sale of your home except your home’s value is worth less than the amount you owe to the lender. You must negotiate with your bank to approve this type of sale so that you will not be liable for the difference in the amount still owed.

It is not for everyone, but a short sale is a very easy, no out of pocket cost solution after a modification denial. The most important component of a short sale is that you need proper and professional attorney or broker representation to negotiate with your lender. Many brokers approach a short sale like a regular real estate transaction and they make many mistakes. Use the contact form to the right to determine if a short sale makes sense for you or for a vetted referral.