Loan Modification and Short Sale Help

Frequently Asked Questions

Why UpsideDownFlorida.com?

Experience, Experience, Experience! We can’ say it enough! We have over 40 years experience negotiating with lenders. Our team of real estate professionals, mortgage consultants, loss mitigation specialist and real estate attorney’s leverage their experience into getting you a solution to your mortgage problems. In addition, we have established relationships with almost ALL the major lenders/banks/credit unions which helps make your process Fast and Easy. Most importantly, we guide you through all phases of the process and keep you informed on the status of your solution.

What Is A Loan Modification?

A modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.

What Is A Short Sale?

A short sale occurs when a lender agrees to accept a purchase price on a property for less than what is owed on the mortgage(s). In effect, the lender is agreeing to take a loss on the property to avoid having to go through the foreclosure process. Short sales are generally only accepted when a borrower is experiencing some form of hardship and can no longer afford the property.

Why Would My Lender Agree To Accept A Short Sale/Loan Modification?

Remember banks are in the lending business, not the real estate business. They cannot make money unless loans are made. Holding property in inventory does not make the bank money. In fact they lose even more money because the home is now vacant, subject to vandalism and the maintenance and upkeep is costly. The bank also has to hire a property management company to oversee the property and eventually a Realtor to sell the property. Get the picture. The bank does not want your home property. It comes down to simple math the bank rather take a guaranteed return on their investment today over a possible recovery of part of their investment 6-12 months later.

What Are The Advantages Of A Short Sale Over A Foreclosure?

There is far less damage to your credit for starters. A foreclosure is one of the most damaging things that can happen to your credit. A short sale will drop your credit score, but not nearly as much (350 points is the average credit score loss for a foreclosure). A short sale will release you from all further obligations under the mortgage as well. If your property were to go to foreclosure, the lender is able to get what is called a deficiency judgment against you. In this case after the foreclosure the lender can come after you for this Old debt. This amount can be thousands of dollars depending on the size of your mortgage and their loss.

What Are The Advantages Of A Modification Over A Refinance?

Loan modifications do not have costly closing costs, title/government fees and painful points/broker fees. Most importantly however modifications do not have pre-set credit requirements or LTV restrictions that limit refinancing options for most homeowners in today’s market.

Can You Help People With Properties Outside Of Florida?

Of course we can! We help Borrower’s all over fix their mortgage problems. For properties outside of Florida, visit us at

How Long Will This Process Take?

Typically the process takes between 15-90 days. Each lender has different requirements and different time frames and thus each case is unique. Another important factor to remember on a short sale is that the time frame is dependent on how quickly we can get an offer on your home. In many cases, you may already have an offer or be working with an agent so this may expedite the overall timeframe

Do I Have To Be Past Due On My Mortgage To Qualify For A Short Sale/Loan Modification?

No, Not always. Most banks/lenders will work with all homeowners; however the basis for them approving a short sale/loan modification is that the borrower is experiencing some form of hardship.

Will A Loan Modification/Short Sale Affect My Credit?

When obtaining a loan modification there is no adverse affect on your credit. The lender agrees to the new terms of your loan with no negative repercussions. A short sale minimizes the damage to your credit that would be caused be a foreclosure. Typically, borrowers see a 50-100 point reduction in their FICO score following a short sale. This, however, is significantly less than a foreclosure which typically results in a judgment and remains on your credit for 10 years and a FICO score reduction of over 300 points. Please note that any reduction in credit score as a result of a short sale can also be impacted by your payment history on other accounts and other mortgages. Thus, borrowers with no other delinquent accounts see less of an impact on their score than borrowers with multiple delinquencies on their accounts.

Is My Property Still Eligible For A Short Sale/Loan Modification If I Have More Than One Mortgage On It?

Yes. The process is the same regardless of how many loans you have on the property even if the loans are with different lenders.

When Is The Best Time To Start The Short Sale/Loan Modification Process? It will be best for you to start the process as soon as you can after you've realized that you can no longer afford your payments. The earlier you can bring us into the picture, the sooner we can get our team negotiating with your lender.

What Is The Fee For Your Service?

We believe in 100% customer satisfaction that is why we don’t charge you unless we are successful in providing you an acceptable mortgage solution. We do charge a small non-refundable processing fee to cover the expenses we incur in assessing the value of your property (appraisal/inspection). For short sales, our small processing fee is all you pay during the entire process. We make sure that all commissions, closing costs and other fees are paid by your lender with nothing out of pocket for you.

What Is The Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What Does That Mean?

Usually, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. The Mortgage Forgiveness Debt Relief Act of 2007 allows you to exclude certain cancelled debt on your principal residence from income.

For any Additional Questions or a Free Consultation contact us at 1 (866) 60-MODIFY or

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