There’s an article in the LA Times today about a situation that I hear about almost daily. It’s a story about a struggling homeowner who believes they are in the midst of a loan modification only to find out that the bank foreclosed their home. It’s a scenario that happens all too often in today’s market.

The story is about a young Long Beach couple struggling with mortgage payments who find out their home had been auctioned off by Wells Fargo when the new owner’s representative showed up on their doorstep.

The sad fact is that most loan modifications don’t work. Here’s an interesting article from Money Magazine that shows how difficult loan modifications really are. The program has been an abysmal failure and the article gives the five top reasons why loan modifications don’t work.

What’s a homeowner to do if they are losing their home? A short sale is a great alternative to foreclosure for two reasons. First, a short sale won’t affect your credit score as badly as a foreclosure because it shows you were willing to work with the bank. Second, a short sale will allow you to stay in your home longer; giving you an opportunity to plan ahead and move out of the property on your terms.

Don’t end up in a situation like Mike and Ellen Karaha. If you are faced with losing your property, please give me a call today at 760.219.3964 or email me at pam247re@hotmail.com to discuss your options. I have helped dozens of people just like you. Please call me today for a free consultation.