Why do a short sale as opposed to a loan modification?
Statistically, only about 5% of loan modifications are successful, meaning that the borrower was able to make all of payments during the probation period (usually a 3 month probation). The risk of trying a loan modification will threaten the length of time a person has between the time they received an NOD (notice of default) or a Lis Pendens has been filed, and the actual sale date that has been set by the bank. Some banks are more lenient than others, especially these days when short sales are becoming so prevalent. Also, many loan servicers/lenders are offering relocation costs to the borrower. The amount of relocation expenses varies from bank to bank and depends on whether the homeowner has applied for, and been denied a loan modification.
