“My bank has contacted me about doing a loan modification. My home is worth about $350,000, but my loan is over $500,000. Do you think I should do it or just let the house go?”
Answer:
This is a tough call.
The moral argument is that you agreed to the mortgage, so you should keep your end of the bargain.
There’s another argument that you and the bank both agreed to the mortgage, and there is a provision that if you don’t pay, then they foreclose.
Given that it will likely take you many years to dig yourself out from being so upside down, accepting the loan modification may not be the best move financially.
Instead of just letting the house go, call me and I should be able to tell you if youll qualify for a short sale. You can reach me at 858-457-KENT.
