It has been about a year since I’ve last updated my site visitors on my loan modification process and the eventual outcome of my personal property. After nearly a year and a half of dealing with my Big Ass Bank with my loan modification, I decided to sell my property.
I found the bank very unwilling to work with my loan and they had very little concern for showing any sort of cooperation. I had come to a breaking point with my communications with the bank. I still have a 2″ pile of paperwork for documents, pay stubs, expense reports, bank statements, credit counseling documents, tracking sheets for all my correspondence with my bank.
In the end, the bank stated they would place me on a 3 month loan modification trial period. I was eager to show my willingness to bring my mortgage current and start rebuilding from my financial crisis. There was one HUGE stumbling block, the bank was unwilling to put the loan modification terms in writing in a simplified manner.
I asked the bank to explain how the trial period payments were to be disbursed towards my note. They would not answer this question in writing or on the phone. I asked the bank to state, in simple terms, the interest rate, principle reduction, new payment terms, etc for the note. They verbally refused to do so on many occasions. They also refused to state simple terms in writing after I had requested this information in writing multiple times.
I was very discouraged with this scenario. I only had a single note on the property and I had never pulled any equity out of the property. With a little flexibility from the bank, I would have been able to stay in my house on a payment schedule that would have worked for both the bank and myself. I had even attempted to reach the owner of record for my note, and that proved pointless. The bank is perfect at building road blocks and diversions, but are not successful in finding a path to a mutually agreeable solution.
When I decided to sell my property, I had to do a short sale because my principle balance was more than the value of the home. As with many other neighborhoods through out the Sacramento region, the value of my house plummeted as banks foreclosed or as the short sales started to flood the market. On June 25, 2011, I pulled the active listings from our local MLS. Of the 1040 Active Elk Grove listings, 706 of them were listed as short sales. Stated another way, 67.9% of homes for sale, were underwater.
In the end, the short sale process was not that bad. I was expecting a battle and I was expecting the bank to make it difficult to move on my life. I supplied the bank all of the information they asked for in an extremely timely manner. I found the key to the successful short sale was consistent, quick, and accurate communication with the bank.
On a side note, currently there are 187 active listings in Elk Grove. Of the 187 listings, 62 of them are short sales. 33.2% of underwater homes, this is a dramatic decrease from just one year ago. The short sale idea was a tough pill to swallow, but I had to do something to better support my family. It has been approximately 8 months since the sale closed, and I am happy to say that I am 8 months closer to rebuilding my credit and my financial stresses have been greatly reduced.
We can only see what the future holds, but I am positive about the possibilities.
If you find yourself in a distressed situation, please contact me. Together, we will find the best solution for you.