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Loss Mitigation Processing

Question: Loss Mitigation and Short Sales?

It seems to me that the only difference between gathering information for Loss Mitigation and a Short Sale is the sale and purchase contract (Short Sale). Basically the rest of the information to process the 2 are the same. Is this true?

Answer: You are correct. You are re-qualifying the homeowner as if you were turning back the clock. Did they lie on the original application. Do they have more assets than they are claiming. Are they willing to share the loss..

Short Sale - Part 4: Real Estate Foreclosure Prevention - Mortgage Bailout Process - Negotiate Free

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 Script

Has your lender been pressuring you over house payments that are in arrears? Possibly you are 2 or 3 payments behind, and the mortgage lender is threatening you with foreclosure on your home. You are by no means alone in this situation. In today’s recessionary economy, many homeowners are in the same boat.

Perhaps it was a job loss or some other unexpected setback that placed you in this position. In any event, if you take prompt action, it is possible for you to stop foreclosure quick.

You will need to communicate rapidly once you have been notified by your lender that your payments are late. By taking action early on, you will improve the likelihood that your mortgage lender will be inclined to work with you.

There are a variety of ways in which you can stop foreclosure quick. In the case of a short period of unemployment, or some other misfortune of a temporary nature, the best solution might be a forbearance agreement. This is a short-term plan whereby your banker agrees to accept part of the back payments now, and then the balance over the next few months. Keep in mind that these make-up payments are on top of your regular house payment each month. However, if your income is high enough to handle the extra burden for a few months, this is the fastest way to resolve the problem and get caught up.

Other possible ways to stop foreclosure quick include getting a short refinance loan, signing a deed in lieu of foreclosure, or negotiating a modification of mortgage, or loan modification.

Most homeowners prefer a modification of mortgage over the other options we have discussed, simply because it results in smaller house payments. This requires a permanent change in your mortgage terms whereby the mortgage lender either agrees to reduce the rate of interest on the loan, or they extend the total amortization period so that your house payments are brought down to a level that you can afford.

Thousands of homeowners all across the country have gotten a modification of mortgage. The good news is that thousands of homeowners have taken advantage of a modification of mortgage to save their home from foreclosure. Unfortunately, there is now a huge backlog of delinquent home loans in the hands of these mortgage lenders. The result is that they are unable to respond to your calls and letters within a reasonable time frame.

Understandably, many distressed homeowners are frustrated in their efforts to negotiate a modification of mortgage. They often find that they are bounced around from one person to another, speaking to someone different each time they call. Most of the employees you talk to are a low-level clerk who has been taught to read from a script and give you boiler-plate answers. But, they don’t have the authority to actually change any of the terms of your loan. You may find that, after sending in the payment you were told to, the mortgage lender continues with foreclosure proceedings anyway.

Best-case scenario is that you actually speak to someone in authority and succeed in negotiating a modification of mortgage agreement. You then enter the next phase which can be a rather lengthy one . You will need to submit documentation, review, notarize and execute new loan documents, and oversee the entire transaction through escrow.

Depending on your temperament and amount of time available to deal with all of this, you might find it’s more manageable to get assistance from a loan modification expert. These professionals have experience in dealing with most of the mortgage lenders. They know who to contact with the authority to negotiate an agreement. They have the necessary negotiating skills to represent your interests, and often can save you thousands of dollars over the life of your loan. Having all the details attended to can lift a huge burden off your shoulders, and may provide the most efficient way for you to stop foreclosure quick.

About the Author:

James Sopher is a retired real estate professional and free-lance writer.

For more about getting a modification of mortgage, visit Stop Bank Foreclosure

Reference: Stop Foreclosure Quick

Source – A Modification of Mortgage Can Help You To Stop Foreclosure Quick

HOW TO REPAIR CREDIT. HOW TO SELL. HOW TO DO LOAN MODIFICATION SALES

Loss Mitigation Hardship Letter

A short sale hardship letter is the most important part of the short sales application. Short sale hardship letters are the key to getting approval by the mortgage lender. Applications are accepted or rejected by a Loss Mitigator who works for the lender to try to stop foreclosure. A lender might be looking at stacks of distress letters from other homeowners. Your short sale hardship letter needs to stand out and touch them without crossing the line into being overly emotional.

A short sale can be the answer to the prayers of a homeowner facing foreclosure. It is an agreement from the lender to accept an offer on the house for less than what is owed on the mortgage note. Wonder why a lender would agree to absorb the mortgage loss? With the market value of so many homes plummeting, too many homeowners default on loans and home mortgages and let homes be foreclosed. These sales will keep a foreclosure from ruining your credit for years to come. Knowing how to write a short sale hardship letter can be the difference between bankruptcy and financial stability.

Only one out of ten applications is approved by banks. Each bank has different procedures. If the proper forms aren’t submitted, or the short sale hardship letter isn’t compelling enough, it will be denied.

It might be approved, but with a Deficiency Judgment. A Deficiency Judgment forces the homeowner to pay the difference between the shorted amount and the actual loan. You could end up with no house and owe thousands.

You can hire someone to write a short sale hardship letter for hundreds of dollars. You can even attend lengthy, expensive seminars to learn how to write one yourself. Here’s something they don’t want you to know; you can learn how to write your short sale hardship letter for a lot less.

Go to ShortSaleHardshipLetter.com. All the information you need is available in a simple step-by-step ebook. This book has insider secrets to getting your short sale hardship letter approved by the mortgage company.

Did you know the type of paper used and ink color can influence the lender? Or approval of you short sale hardship letter is more likely on certain days of the week? There are so many variables that can make or break your letter. Learn how to get approved by using tricks of the trade we’ve learned after analyzing thousands of approved short sale hardship letters.

The Short Sale Hardship Letter ebook is updated regularly to ensure that it contains the most accurate information. It’s only available for a limited time before being removed for revisions. You can’t afford to wait months for the next version to be released. Buy it now.

A short sale hardship letter is the one chance to gain relief from your lender. A good short sale hardship letter can save your credit and financial future by stopping foreclosure. Don’t lose another nights sleep stressing over your home mortgage note. Order this ebook now and put an end to your financial nightmare.

About the Author:

Simon Volkov short sale real estate investor provides tips and tricks about how to write a short sale hardship letter that works. After many years of doing short sales and working with the banks loss Mitigators he found the formula of success to increase the acceptance of your hardship letter.

Source – Short Sale Hardship Letter – Expert Advice

Hardship Letters: Do They Still Matter for Mortgage Loan Mods and Short Sales?

Loss Mitigation Company

Question: How can I meet Real Estate Professional so that I can introduce them to a new income stream?

The services my company offers includes, loss mitigation, hard money lending, property investment opportunities, commercial and residential loans.

Answer: Most realtors will happily listen to any pitch that claims to increase their income, since most realtors make less than $25K per year. Just pick up the phone and start asking for appointments.

You could even call the manager of the office, and ask to make a presentation to lots of their agents at the same time. If you've got a real way to let them make more money, they'll find a time for you.

Latest State Requiring a License to Do Loss Mitigation Work