Upside Down Mortgage

Posts Tagged ‘mitigation’

Loss Mitigation Negotiators

What is loss mitigation?
You can be sure that there are a lot of people who do not have the faintest idea what this expression means. For that matter, there are a lot of terms in the finance field that are rarely used by most people in everyday conversation.
If you are now facing a home foreclosure, you are looking for answers-
answers that will explain what all this "foreclosure" terminology, means in simple-to-understand words. Rather than define all these confusing financial terms at once, let's look at loss mitigation and explain how it may be a "weapon" that you can use to defeat your home foreclosure.

Loss Mitigation...
A course of action that is available to you, the homeowner, and a process that will enable you to stop home foreclosure. That is correct; you the homeowner have the power to request negotiations with the lender.(Imagine that)
Not only can it stop the foreclosure process, but it can help you save your family home and the equity you have built up. The lender agrees to assist the borrower (you) by working out an agreement to help you stay in your home and restructure your loan payments. Loss mitigation is a set of tools the lender uses to stop foreclosure.
Which could include:

> Special forbearance agreement
> Loan modification / Mortgage Refinance
> Partial claim
> Pre-foreclosure sale
> Deed-in-lieu of Foreclosure

An agreement between the lender and homeowner to repay past due payments within an agreed upon period of time is the goal of loss mitigation.
Any of the previously mentioned tools or combination of each can be used by the lender to enforce the agreement.
Your current situation...
Your current situation is important in the process, because you are now behind on payments and in danger of defaulting on your home loan. This information needs to be very clearly and succinctly described to the lender. Communication with your lenders is very important.
Do not hesitate to tell your lender all the facts. When they understand your situation completely, your lender will be more able to help you find the right solution.
You must remember this is business and the lender will approach the negotiations that way. Your job is to put a face/family in front of them and make sure they understand the situation you are facing. If you have recently faced any hardships such as:

> being laid off at work
> going through a divorce
> medical bills
> health issues - resulting in loss of income

The lender MUST know this information.
These few are just examples of what the lender will take into consideration when trying to help you stop the foreclosure process. Your hardship and financial circumstances will be taken into consideration.
The negotiations...
The outcome of the negotiations usually results in your existing loan being re-established or modified to some degree. Loss mitigation does not involve you losing your home or the equity you have accrued. In addition loss mitigation is not dependant on your credit rating.
There is help...
As stated earlier loss mitigation is a process available to you. That does not mean that you have to go into your lender alone. In fact if you use a reputable firm, your chances of negotiating with your lender (to benefit you) elevate significantly.

This is not a game; you are facing the possibility of losing your home to foreclosure. Be sure you check out the company before you consider using them. You definitely want to work with a reputable establishment.
The loss mitigation firm will work with you to customize a plan that will fit your individual circumstances.

The benefits of loss mitigation negotiations...
It is a process that you and your lender enter into. This course of action is meant to cut the losses incurred by both parties. If the lender has to foreclose on your property it actually will cost
them more than taking time to work out a solution with you NOW!
You keep your home and equity, and the lender has halted the foreclosure process and has an agreement with you to continue your (altered) mortgage payments.

One final point...
You must always remember when you are facing a home foreclosure that time is your enemy. The clock is always running. Even while you are
negotiating with your lender...the clock never stops ticking.

Tick-tock, tick-tock, tick-tock...
The best of luck during your Loss Mitigation negotiations.

About the Author:

Jeff Manzanares is the president / owner of Bridges Finance Inc. a finance companay in Orange County CA. Jeff is also owner of Home Foreclosure Help a website dedicated to helping a homeowner keep their home when they are facing foreclosure.

Article Source: ArticlesBase.com - Loss Mitigation - a Set of Tools to Stop Foreclosure

Short Sale, Foreclosure, Mortgage & Real Estate Marketing, Loan Mod Expert Negotiator

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Loss Mitigation List

Question: What's the probability of a short sale success?

My offer on a short sale was accepted by the seller. The house was on the market as a short sale for about a year in Orlando, FL. The original list price on the house was $70K more than my accepted offer. A day after my offer was accepted my realtor received a call from the seller's loss mitigation company who informed her that the banks are "slow" and to let me know that it will take 3 - 5 months to close. The seller has only one lien holder. I also placed $1K in escrow. What are my chances of actually closing? Can I rescind my offer if closing isn't done in 3.5 months? And lastly, what are the banks doing during this 3 - 5 month time frame while the house is vacant and the maintenance is going downhill? Thanks all!

Answer: I would give it a 20% shot.

They are appraising it and trying to figure out if it is better for them to foreclose. Very often foreclosure is more logical then a short sale.

How to Properly List a Short Sale Property

Loan Modification Ocwen

In addition to displacing a homeowner, a typical foreclosure can result in up to $80,000 in losses for the homeowner, lender, local government and neighbors whose homes fall in value, according to an April 2008 report from Congress' Joint Economic Committee. With approximately 1.5 million sub prime ARMs expected to reset to higher interest rates in 2009, there is a need for servicers to swiftly implement and execute on home loan modification programs.

Although homeowners can do their own home loan modification, they should at least consult with a few home loan modification companies to get a feel for how the process works. WARNING!... You should use your best judgment when having discussions with these companies. Avoid paying any hefty fees up front, especially if there is no guarantee in place. Also be cautious, if any representatives are very pushy and sales heavy.

Here are some important tips to consider when starting the home loan modification process...

1) Keep a detailed record of all dates, times, names, and contact numbers every time you call your bank/servicer

2) Have your hardship situation outlined properly and clearly written before you call

3) Try to NEGOTIATE with your bank after they give you the first offer. They are always looking out for their financial interest first

With the right set of documents and consultation the homeowner will be able to get their lenders/servicers to freeze the interest rate of their existing ARM for a specified period or modify the ARM to a fixed-rate or interest-only fixed-rate loan permanently.

Daniel Clarin, President of National Modification Consultants, says they can help lenders/servicers quickly execute loan modification programs on behalf of homeowners that are compliant with current legislative or investor requirements. Their company's robust change management capabilities ensure rapid implementation of any new or updated requirements brought on with government intervention programs. The company provides Step-by-Step submission instructions and negotiation tips to ensure a fast, effective, and mutually beneficial loan modification. In addition to the bank ready loan modification package provided by National Modification Consultants through their website www.instantloanmodifications.com, they provide live help to answer any and all questions regarding a home loan modification; pre-submission and post-submission.

Home Loan Modifications work for ALL the major banks and servicers servicing mortgages from banks and lenders like, Countrywide, Chase, Citi, Wells Fargo, Bank of America, Ocwen, IndyMac, Etc...

About the Author:

Vice President of National Modification Consultants, LLC A Leader In Doc Prep And Consultation Services for Standardized Loan Modification Agreements And Packages Automatically Customized To Meet Bank/Lender/Servicer Specifications though a proprietary web application document processing system, http://www.InstantLoanModifications.com We can be reached at 877-786-9498

Article Source: ArticlesBase.com - Home Loan Modifications Help Homeowners Reduce Thier Monthly Payments

Ocwen Financial Form