SERVICES

Loss mitigation programs were established by the federal government and the mortgage industry in order to help prevent home foreclosures. There are several programs available and each lender has its own policies regarding the use of these programs. In addition, each program has its own complexities and rules that must be followed. Because of our extensive experience, as well as our close working relationships with mortgage lenders, we are able to help you successfully navigate through those complexities and rules, which may otherwise be overwhelming. First, we perform a thorough assessment of your personal finances and analyze your lender's loss mitigation policies. Then our experienced loss mitigators will negotiate with your lender to get you the best possible solution to your unique and specific mortgage situation. We can help you keep your home and preserve your credit history through any one of these loss mitigation options:

1. LOAN MODIFICATION
A Loan Modification is "a permanent change in one or more of the terms of a mortgagor's loan which allows the loan to be reinstated, and results in a payment the mortgagor can afford." In other words, in order to reduce your monthly payment, your interest rate may be lowered, your remaining balance re-amortized and/or the current term of your loan extended. There are costs and fees associated with a modification that you will be responsible for and for which you will have to pay up front. In order to qualify for a Loan Modification, all property taxes must be current or you must be participating in an approved payment plan with your taxing authority. If you have any additional liens or mortgages with other lenders, they must agree to be subordinate to the first mortgage that we will attempt to modify.

2. REPAYMENT PLAN
A great many people have short-term financial problems and may have no choice but to miss a payment or two on their mortgage. Once that short-term problem is over, they can go back to making their mortgage payment, but; they can't come up with enough money to also repay the missed payments. This is the most common mortgage problem and a repayment plan is the most common solution. We will help guide the lender towards a repayment plan that works for you. Based on what you can afford to pay, a portion of the amount owed may be added to your monthly mortgage payment until repayment is complete.

3. SPECIAL FORBEARANCE
If you can show your lender that you will be able to pay your mortgage loan after a certain length of time, you may qualify for a special forbearance. Your lender will allow you to make reduced payments for a certain amount of time or, in some instances, no payments at all. However, during this time period, interest on the loan will continue to accrue. The special forbearance is often combined with a repayment plan.

4. VA LOAN MODIFICATION / REFUNDING
The VA Loan is a program set up by the Veterans Administration to help active duty and retired military personnel purchase homes. The VA loan limits the types of fees that can be charged by your lender. If you're having temporary problems, you may be able to secure a VA loan. Modification on a VA loan: If your lender will not do a loan modification, but intends to foreclose, the VA has another option called "re-funding." In this instance, the VA will buy your loan from your original lender and re-amortize the loan so you can afford to make the new payments. The decision to participate in re-funding is entirely within the VA’s discretion.

5. DEED IN LIEU OF FORECLOSURE
If you have had your home unsuccessfully listed with a real estate agent for at least 30 days, it is in sellable condition, and if there are no claims or liens against it other than your mortgage, you may be eligible for a "deed in lieu of foreclosure." What this means is that you transfer the deed of your house to your lender, so they do not have to foreclose on the property. They obtain ownership of the property immediately, and the remainder of your debt is forgiven. Note that this program does not save your house.

6. SHORT PAYOFF
A "short payoff," also known as a "short sale," a "pre-foreclosure sale," or a "compromise sale," is really an option of last resort. The requirements to have this occur are very stringent. Short payoffs must be approved in advance by the lender. A short payoff is defined as "a sale in which a lender allows the property securing a mortgage or deed of trust loan to be sold for less than the existing loan balance, due to factors such as the borrower's financial circumstances, the property's physical condition, and local real estate market conditions." To qualify for a "short payoff," you must have suffered a long term financial hardship such as: total job loss; catastrophic illness within your immediate family; your employer has transferred you out of the area and you're unable to sell/rent the property; or you've suffered a disabling injury that precludes you from ever working again.

7. PRINCIPAL BALANCE REDUCTION
A principal balance reduction is the last option that a lender may consider based on your specific circumstances. This is a fairly new solution for distressed borrowers and only applies in a limited number of cases. If the value of your home is significantly less than the principal balance of the loan you used to acquire it, your lender may be willing to reduce the principal balance owed to the new, lower property value.