Chicago Short Sale Myth: I Have To Go Thru The Loan Mod Process Before I Can Short Sell

Chicago Short Sale Myth: I Have To Go Thru The Loan Mod Process Before I Can Short Sell

Posted on July 11th, 2011 in All Articles, Short Selling/Buying.

Chicago IL – The Stop Foreclosure Institute recently received a question from Tonia about short sales. Apparently Tonia has been mislead by her lender.

Here is Tonia’s question about short sales. “I’ve been trying to sell my house for over a year now and have since remarried and moved into my husband’s house.

I told the realtor I am willing to do a short sale so she called my mortgagor (short sale dept) and they said to just send in the bid. Well, they received a bid but will not accept it.

They said it is because I haven’t gone through the loan modification process that FHA loans have to go through first before a short sale can be done. I don’t want to modify my loan. I want to be dismissed from it.

I’m current on my payments because the same guy told me that I could be current and still do a short sale which it isn’t sounding like now. Any advise would be great.

My house payment is due next week and if it is going to take me not making payments to get this short sale through I won’t make them. Tonia.”

Here was our response to Tonia. It sounds like you are being mislead. FHA issues guidelines to lender’s that handle their loans. Their guidelines say nothing about a loan modification having to be done first.

You can look up the guidelines for FHA Short Sales. Just google: “Mortgagee Letter 2008-43. I have read thru this countless times and didn’t remember a requirement for a loan modification first.

I just scanned thru it again and didn’t see it this time. I do remember we go into this same argument with another short sale negotiator. They said we had to go thru the loan mod process before they could process the short sale.

We told them we had read thru the entire letter and knew it didn’t have that requirement. They backed off and processed the short sale. You just have to be firm.

And if they aren’t following FHA’s rules, then call up FHA and let them know. FHA may fine them for breaking the rules.

Thinking about a short sale? Visit for information on Chicago Short Sales and Loan mods. I can help you short sale your property so you can move on with your life. Send me an e-mail at I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc.. Chicago Short Sales Realtor:

Phone: (312) 953-6725.

View My homes for sale at

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.

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Important Notice

Phil Buoscio, Better Living Realty – Buoscio Brokerage, Inc., and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?

Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.

However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.

We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.

You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

The views expressed here are Phil’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc..

This information on Chicago Short Sale Myth: I Have To Go Thru The Loan Mod Process Before I Can Short Sell is provided as a courtesy to our viewers to help them make informed decisions.