COMPREHENSIVE LOSS MITIGATION SERVICES

The purpose of loss mitigation is to reduce the losses that lenders AND borrowers suffer when mortgage loans become delinquent.  With the recent rise in mortgage defaults, this has become a common alternative.  Lender’s have begun establishing entire departments devoted to loss mitigation.

Any of these methods are less expensive to a lender.  The foreclosure process is extremely costly.  Now the home is unoccupied and not well cared for, which causes it to lose even further value.  The lender is being saddled with homes that now need to be marketed and sold.  This is not their primary business.

The home owner who has already expended much money in purchasing, maintaining the home, and perhaps even making improvements to the property, retains a place to live and is not disrupted by moving.

 

 

Ideally, if someone is feeling the strain of meeting all of their financial obligations, including their home, and if refinancing the mortgage is not an option.  With market values declining, many people do not have enough equity in their homes to refinance.  Or if one is afraid that they may not be able to withstand an adjustment on their adjustable rate mortgage (“payment shock”).  Lenders are increasingly more willing to negotiate either lowering the rate, and/or fixing the rate in order to accommodate the borrower.

Borrower’s need to understand that there are legal, financial and practical implications to the various choices (including foreclosure).

The idea is to salvage the client’s financial situation, credit, and potentially their home. 

We attempt to do what I can to navigate the “system” and negotiate a plan with the lender that will appease both parties.   Often the homeowner is unfamiliar with the terminology and too personally attached to the situation for communicating effectively with their lender.

Our services are useful whether the home is a primary residence, second home or investment property.  We are well versed in preparing hardship cases for consideration by lenders.  We also help people understand the potential impact certain choices will have on their credit profile, which could affect their ability to borrow in the future.