Loan Modification or Short Sale?

With loan mods having little success, some home owners are having better success with short selling their homes. The statistics are ugly for the amount of loan mods actually offered to home owners, even with the government pressure to do so. Approximately 25% of applications are granted a loan mod. Some 50% of those are accepted by the borrowers and a good 50% of those default immediately. Yes - you should try and see what the bank offers. Make the right decision, take a loan mod that will work for the long term and not just a temporary fix. The other solution is a short sale - and banks have been giving higher approvals on short sales than on loan mods. This having to do with the tax breaks given to banks for this process compared to little tax benefit on a loan mod.