Save My Home

8 Loss Mitigation Programs to Stop Foreclosure!!!!!

Stop Foreclosure with Loss Mitigation Programs

Loss mitigation programs were established by the federal government and the mortgage industry in order to stop home foreclosures. They help foreclosure victims in 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 and credit history through a variety of loss mitigation options:

1. REFINANCE YOUR HOME

If you have equity left in your home you still have the option of refinancing. Even though you are or have been behind on your mortgage, we have Lenders that will still refinance you. The interest rate will typically be higher then your existing interest rate, however it is a great option for saving your home. Click here if you want to see if you qualify.

2. 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 talk to a loss mitigation specialist about participating in this program.

3. LOAN MODIFICATION

(Available on a very limited number of VA loans with lender and/or investor approval) (Called 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 talk to a loss mitigation specialist about participating in this program.

4. SHORT PAYOFF

(Short Sale) (Pre-foreclosure Sale) (Compromise Of 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 talk to a loss mitigation specialist about participating in this program.

5. VA LOAN MODIFICATION/REFUNDING

(Available for VA loans only) (Need 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 talk to a loss mitigation specialist about participating in this program.

6. PARTIAL CLAIM

(FHA mortgages only) (Some Freddie Mac Investor loans)

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 talk to a loss mitigation specialist about participating in this program.

7. SPECIAL FORBEARANCE

(FHA loans only) (Type I & II)

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 talk to a loss mitigation specialist about participating in this program.

8. DEED-IN-LIEU OF FORECLOSURE

If you are approved for a Deed-in-Lieu, you will be giving up all rights to the property and the property will be deeded to your lender. In exchange for the deed-in-lieu, the lender may release you from the obligation to repay your mortgage and waiver all deficiency judgment rights. There can be tax consequences of a deed in lieu transaction. A qualified tax professional should be consulted to determine the impact this may have in your case.

Lenders will consider accepting a deed in lieu transaction when other options are not possible. Generally, lenders expect the following conditions to be met in order to consider offering a homeowner a Deed in Lieu solution:

• You have experienced a long term financial hardship that has not been resolved.
• Your house has been on the market (at fair market value) for at least 90 days.
• There are no additional claims or liens (other than the first mortgage) against the property.
• The house is broom clean.

Any homeowner can negotiate a Deed in Lieu with their own lender. However, too many banks use a "one size fits all" approach with homeowners in foreclosure. Your situation is unique. You deserve to get a fair and personalized settlement from your lender. We stop foreclosure by taking the time to listen to your concerns, assess your financial needs and then negotiate a mortgage solution that you can live with.

If you think a Deed in Lieu may be the solution you need, apply now for a free consultation to discuss how we can help you stop foreclosure and reduce the impact on your credit. Or call 208-745-7234 to speak with a foreclosure prevention professional immediately.

Lenders are more receptive to a Deed in Lieu proposal when still in the early phase of a foreclosure proceeding. If you are experiencing foreclosure now, you should act fast to protect yourself.

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