Covid-19 loan modification options

[Andrew Coulton]

Hello, 

My fiance's mother is self employed where her income has reduced by more than 50% due to Covid regulations in our state. The loan went into forbearance in April and now the bank has offered 3 options:

1. Short sale 

2. Deed-In-Lieu Program

3. Home retention

Checked some comps and her house is worth between 250K - maybe 270K. She has a principle balance of 78K

She would prefer to stay in her home, the retention program details are below:

 What do people think of the offer she is receiving from the bank in regards to the modification plan?

Any feedback would be greatly appreciated!