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Listing of loss mitigation programs that
stop foreclosure fast!
Loss mitigation programs were established by the federal government and
the mortgage industry in order to stop home foreclosures. They help
homeowners in foreclosure /default on their mortgages to find
alternatives to home foreclosure. Every homeowner's situation is unique
and each lender has their own policies regarding the use of these
programs to stop foreclosure.
Our extensive experience and solid working relationships with
mortgage lenders allows us help you avoid the common pitfalls that many
homeowners encounter while trying to work things out directly with
their lender. After performing a thorough assessment of your personal
finances and analyzing your lender's loss mitigation policies our
professional loss mitigators will negotiate with your lender to get you
the best possible solution to your home foreclosure problem. We can
help you save your home through a variety of loss mitigation options:
LOAN MODIFICATION
This is available on a very limited number of VA loans with lender
approval also referred to as recast for FHA
If you have incurred a long term financial hardship, our office can
assist you in supplying the appropriate information to lender to take
the appropriate measures to modify the term(s) of your mortgage. This
could lower the interest rate and/or extend the term of the loan
resulting in lower payments. There are costs and fees associated with a
modification that you will be responsible for. All property taxes must
be current or you must be participating in an approved payment plan
with your taxing authority to be eligible for a modification. Any
additional liens or mortgagees must agree to be subordinate to the
first mortgage. All requests are subject to your lender's approval. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
VA LOAN MODIFICATION/REFUNDING - Available for VA loans only .
Require at least 30 days to process.
A refunding is when the VA buys your loan from the lender. Refunding
may give VA the flexibility to consider options to help you save your
home that your current lender either could not or would not consider.
When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is
added to the principal balance and the loan is re-amortized. Your new
loan will be non-transferable without prior approval from the
Secretary. If your interest rate was lowered and an assumption is
approved, the interest rate will be adjusted back to the previous rate. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
SHORT SALE - Pre-foreclosure Sale
If you have suffered a long term financial hardship and are unable to
maintain your loan or if you need to sell the property to avoid a
default loss on the property, it is possible that the lender may be
able to accommodate you with a short payoff. A qualified buyer is
required. If this is an option you wish to pursue, you must inform the
loss mitigation specialist assisting you immediately. There may be tax
ramifications associated with any short payoff or foreclosure;
therefore, we recommend you contact your tax advisor for details. Some
states permit lenders to seek a deficiency judgment for the amount the
payoff was discounted. See your state's foreclosure law for more
information. Check with an attorney for advice on your personal
situation. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
DEED-IN-LIEU OF FORECLOSURE
If you have incurred a long term financial hardship and your house has
been on the market (at fair market value) for at least 90 days, you may
be eligible for a deed-in lieu of foreclosure. To be considered for
this option, you must complete a financial package and provide a copy
of your recent active listing agreement. Also, there cannot be any
additional claims or liens (other the mortgage) against the property.
If you are approved for a deed-in-lieu, you will be giving up all
rights to the property and the property will be conveyed to your
investor. In exchange for the deed-in-lieu, the lender may waiver all
deficiency judgment rights. You may be asked to participate in a Short
Payoff program before a deed-in-lieu of foreclosure is accepted. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
REPAYMENT PLAN
If you have incurred a short term financial hardship and your loan is
two or more months past due, your loss mitigation specialist will also
consider submitting a request for a payment plan to your lender for
approval. Only after reviewing your financial situation will this
option be considered. All clients must be able to show that they can
afford this plan in order to be eligible. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
SPECIAL FORBEARANCE - FHA loans only
If you have incurred a short term financial hardship and your loan is
90 days to 365 days past due, the loss mitigation specialist will also
consider submitting a request for a special forbearance. A special
forbearance is designed to provide you with more relief than is
possible with a regular repayment plan. Typical approval can result in
spreading the repayment over 12 to 18 months. Type II - can be utilized
in an unemployment situation whereby the promise of future employment
is present. We have done VA loans that resulted 27-month repayment
plans. Click here
if you want to contact our loss mitigation specialist
about participating in this program.
PARTIAL CLAIM - FHA mortgages only
The loss mitigation specialist may assist in requesting a partial claim
if you qualify. You may be eligible if your loan is 120 to 365 days
past due. A partial claim results in placing your past due payments
into a subordinate mortgage (2nd mortgage) between you and the
Secretary of Housing Urban Development. The partial claim note will
require you to start making payments when you pay off the first
mortgage. There is no interest. The partial claim can be for no more
than 12 months of past due payments. Click here
if you want to contact our loss mitigation specialist about
participating in this program.
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