Upside Down Mortgage

Posts Tagged ‘loss_mitigation’

Loss Mitigation Negotiation

When real estate investors envision what it means to invest in foreclosures, they usually fall into one of two camps. One camp contains investors who primarily focus on the REO process, and they typically purchase REO properties or HUD homes to build their portfolios or generate profits. The REO camp usually requires access to a little more capital to be consistently active so this may offer limitations to many investors, particularly those new to real estate.

The other camp, and the one that I have built my own real estate business around, focuses on preforeclosure properties and short sales. There is also fantastic money to be made here (if there wasn’t, I wouldn’t personally be doing it) and it offers more opportunities for the novice investor. It is primarily for this camp that I have created my landmark Preforeclosure Cash Flow System.

To get a free Foreclosure investing and short sale course, Go to: Loss Mitigation Training

Working the preforeclosure side of the foreclosure business is a natural draw for many investors interested in foreclosures because there is an abundant source of motivated sellers. That is only the tip of the iceberg, though. No matter how motivated a seller may be, real estate investors need to be well trained to be at their best. At the core of this need for training lies loss mitigation training.

What is loss mitigation? It is a general term that refers to working with a lender, whether you are helping a seller negotiate a payment arrangement or if you are working short sales. Lenders have their procedures they follow when processing foreclosures and so too should you have a process for working with loss mitigation.

Today’s preforeclosure business is more than just looking for free foreclosure listings on the Internet or taking the plunge and investing in foreclosure listings that carry a monthly or annual fee. Anybody can do this and what will set you apart as a foreclosure real estate investor and as a preforeclosure specialist is the type of loss mitigation training you have.

I’ve been in this business of foreclosures for a long time now and I’ve seen a lot of experts come and go whose best approach was simply to tell you about all the money there was to be had in preforeclosure and short sales. Where these others fell short was their inability to effectively train their clients in loss mitigation.

My business approach is a little different. Sure, I’m going to be honest with you and tell you that there is indeed a lot of money to be made in short sales and most any aspect of the preforeclosure business. I also back that up by providing the type of loss mitigation training that I have proven successful with my own business.

Friends, loss mitigation and short sales are incredible opportunities but it can also be a jungle out there if you lack the loss mitigation training you need to be at the top of your game. You owe it to yourself to check out my Preforeclosure Cash Flow System and the detailed, cutting edge approach to loss mitigation that is contained within it. I wish you the greatest success in real estate investing.

To get a free Foreclosure investing and short sale course, Go to: Loss Mitigation Training

Dedicated to Multiplying Your Income,

D.C. Fawcett

The Business Building Coach to the Foreclosure Industry

About the Author:

The author is a business building coach to The Foreclosure Industry. PreForeclosures is professional business of Real Estate Foreclosure Investing. For more information visit: www.realestateforeclosuresinvesting.com

Source – Loss Mitigation Training- an Essential Part of Any Preforeclosure Business

Live Loss Mitigation Call with Chase

Loan Modification During Bankruptcy

Homeowners hoping to get a loan modification with Countrywide may want to rethink their options. Countrywide Financial, best known for excessive lending practices that led to widespread defaults, now has so many bad debts on its books that it may have to tighten up its loan modification service.

Home Loan Modification allows defaulting borrowers to work out new terms with Countrywide, so that they can avoid foreclosure and stay on track. Countrywide began offering the service through their Home Retention Department at the height of last year’s real estate bubble. However, due to the volume of requests coming in, many cases were delayed and resulted in foreclosure. The company hit an all-time low in 2008 and was recently bought out by the Bank of America.

In line with the change, the Loan Modification Department of the Law Offices of Marc R. Tow is also taking measures to protect its clients. The firm, one of the leading loan modification services in the country, will only negotiate modifications with Countrywide for clients with viable cases and those who are in serious financial trouble.

Changes are also expected in national Loan Modification policies. While loan modification is still open to borrowers not in default, new laws may soon limit the service only to those in bankruptcy or serious delinquency. This will allow lenders and loan modification companies to focus their attention to clients who are most in need.

The firm will continue to help clients with loans serviced by other companies. Besides loan modification, the Law Offices of Marc R. Tow also offers assistance with loss mitigation alternatives such as short sales.

About the Author:

The Loan Modification Department is composed of a team of attorneys, mortgage and real estate professionals, and hardship analysts. Lead by Expert Loan Modification Attorney Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information Just Call 800-738-1170 or Visit our website http://www.cdloanmod.com/

Source – Countrywide to Tighten Up Loan Modifications

Las Vegas Bankruptcy Attorneys Haines and Krieger – Loan Modification

Loss Mitigation Companies

Question: Does anyone know is Loss Mitigation Solutions in Phoenix AZ a real modification company?

I have a home in Indiana in foreclosure. I received a call from this company Loss Mitigation Solutions in Phoenix. They seem very professional and work for an attorney I believe but the proposal they put together seems too good to be true. You know the ole saying and there are so many dishonest people out there especially doing this loan mod thing. Please please can I get some feedback??!!

Answer: check with bbb in that state
check with the attorney general in that state
type in yahoo, the name of the company and the word lawsuit(s)

generally, these companies are not beneficial. You can negotiate on your own. doing things dishonest, like not making a payment for 4 or 6 months to get a deal, it just not right. Your call though, you sleep with you every night.

LOSS MITIGATION COMPANIES ( DO IT YOURSELF )

Loss Mitigation Application

Recent legislation at the state and federal level as well as some recent bank takeovers by the FDIC have made loan modification application rates soar. Unfortunately, most consumers on their own are having little to no success modifying their loan, unless it is just a forbearance agreement in which the lender allows the borrower to pay back any monies that are in arrears over time. This is hardly a loan modification and the late payments a have already adversely affected your credit and make it impossible for you to refinance.

Unfortunately, most companies that are not law firms can only get you a forbearance agreement, and they do nothing to protect your rights, so make sure you have loan modification attorney represent you with your lender to protect your legal rights. In fact recent legislation enacted in California Loan Modifications requires that a lender must give you a modification review prior to foreclosing on your property, and the consumer may only be represented by an Attorney for HUD approved Counselor, or they give up many of their rights in a foreclosure. Many of the “Attorney Based” or “Attorney Backed” companies actually are not law firms nor will you be represented by legal counsel and could give up many of your legal rights by using such a company. The banks will not modify willingly and only an attorney can protect your rights and apply the right kinds of pressure to a Lender’s legal department to get you the result you are looking for. Even HopeNow, a free service that offers counseling to consumers is so mired in backlog, most consumers homes will be foreclosed on long before they get help.

“If you are looking to modify your loan, be prepared to have a truthful and honest about both the reasons for your financial hardship as well as your true financial picture” says Marc Bonanni, Attorney for http://www.consumerdebtadvocate.net. . “Be prepared to provide documentation as back-up. Properly preparing a case to take to your lender in the loan mitigation process is critical, and properly structuring the mitigation proposal off the information you provide is a key aspect of preventing foreclosure” says Marc.

It is also important to understand that you must meet strict financial guidelines to even be considered for mortgage mitigation. If your financial picture is so dire that you are still financially encumbered even with a 1% interest rate, it is unlikely that you will be able to save your home from foreclosure. If your lender feels they will take less of a loss if they foreclose now because there is uncertainty that you can meet your new modified loans structured payments, they would rather foreclose now to lessen their loss.

There are three key elements in any loan modification or loss mitigation process. Each is an area to negotiate depending on the borrower’s unique circumstances. The first would be adjusting the interest rate of the first or second mortgage to a lower one that would be manageable by the consumer. The second would take into consideration any missed payments and penalties that are in the arrears, and structuring a repayment plan or putting those monies on the back of your loan. The third and most difficult is if your loan is now worth more than your property. Getting the lender to write down principal balance can happen in the right circumstances, especially if there are predatory lending issues involved in your case, but don’t expect your lender to make you whole on your bad investment decision. Again, preparing the right argument is key and expect the negotiations to take 45-60 days at a minimum. It is an intense process and the Loss Mitigation departments at most lenders are understaffed to meet the monstrous demand of consumers who are vying for their attention from everything from late payments to foreclosures. Again, most attorneys can bypass the loss mitigation department and work directly with your lender’s attorneys, so this is still your best bet for success in the loan modification process.

About the Author:

Bill Baskin is a nationally recognized expert on Mortgage, Credit, Automotive, and Debt topics, having been a quoted source on a variety of newspaper, radio, and television pieces. He currently writes for

http://www.consumerdebtadvocate.net
on consumer education pieces.

Source – What You Need to Know About the Loan Modifcation Process

LOSS MITIGATION EXPRESS-SALES PRESENTATION.WMV

Loan Modification Cases

Question: Loan Modification First Payment or keep Checking from Chex?

Ok here is the brutal honest truth-I lost my Father had to pay for his funeral expenses and pay his debts- in the meantime did not pay close enough attention to my bank account and debt (obviously)-I did a loan mod on my house which was a long process and finally my first payment is due the 1st of May-now on the other hand I let my check account get out of control and I owe 1400-if I don’t pay that off by the 30th of April they will send to collections and Chex-my mortgage NORMALLY gives a 15 day grace period but I am not sure in the case of just doing a loan mod-I cannot pay both by the due date-I can have both paid if the mortgage can wait until the grace period date-any advice? thanks!!

Answer: Have you contacted your bank? Usually you can set something up with them to pay it back in smaller increments, as long as you make your weekly payments. I went through that with my bank (I was overdrawn by 300) and they let me pay it back weekly while still allowing me to use my account and not taking all of the money out when my direct deposit went in. Contact your mortgage company and just ask them. Don't go into it detail, just ask. The worst they can tell you is no.

Can you get your pay/money in cash/check form and just Western Union or MoneyGram your mortgage payment to the company? That is one way to make sure your mortgage company gets the payment. I understand that your risking the account going to collections, but making your mortgage payment on time far outweighs your bank account going to collections. Good Luck!

Loan Modification Case Study