Loss Mitigation is the process of negotiating the terms or repayment of a loan in order to avoid foreclosure.
Question:
Are you having difficulty getting your Lender to speak with you?
Have you been passed from one person to the next when trying to negotiate with your Lender?
Do you feel that your Lender has not spent enough time with your while negotiating your loan?
It can be advantageous to know your lenders loss mitigation programs, options, and requirements before negotiating with them.
(However, your lender will not volunteer these to you.) They will only advise you of the option they feel is in their best interest.
Having a Loss Mitigation Specialist who is familiar with your lender, to negotiate on your behalf can be beneficial.
When you contact your lenders Loss Mitigation Department you must have a pre-developed plan that is beneficial for both you and your lender.
Then you can negotiate an agreed upon plan that conveys your ability to remain ownership of your home.
Remember, your Lender does NOT want to own your home!
In working with your Lender's Loss Mitigation Department is may be possible to negotiate favorable terms with one of the following programs and stop your foreclosure proceedings:
Special Forbearance
You may be able to arrange a repayment plan with your lender based on your financial situation that may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses.
(You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.)
Mortgage Modification
You may be able to extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level.
You may qualify if you have recovered from a financial problem and can afford the new payment amount.
Partial Claim
Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.
You may qualify if:
Your loan is at least 4 months, but no more than 12 months delinquent.
You are able to begin making full mortgage payments.
(When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.)
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WHAT ARE THE MAIN POINTS I SHOULD REMEMBER?
Don't lose your home and damage your credit history.
Stay in your home to make sure you qualify for assistance.
Explore every alternative to keep your home.
Beware of scams.
Don’t prepay for services before they are performed.
Do not sign anything you don't understand.
Remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.
Act now. Delaying can't help.
If you do nothing, YOU WILL LOSE YOUR HOME!
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