Stop Foreclosure - The Loss Mitigation Alternative
There is more than likely a few things which have led to your being in the situation you are in now. You may have been through a bitter divorce, lost your job or experienced an illness. The bills are piling up and the increased price of utilities are staining your budget, perhaps you have an adjustable rate mortgage (ARM) which has skyrocketed; it is getting difficult to cope.
While you're trying to think of how to stop foreclosure on your home, you're getting near constant calls, letters and knocks on your door from foreclosure investors.
These investors are in the business of buying homes from people who are in danger of losing their homes to foreclosure and then selling these properties for a profit. They know that many people who are facing foreclosure have no alternative other than to sell their home for whatever price they can get.
While on a surface it may seem like a good idea to sell your home to these foreclosure investors in somecases, but before you do so you should look into the alternatives. Definitely do not sell your home to one of these investors before checking out your other options, such as rearranging your loan.
Rearrange Your Loan To Stop Foreclosure
Once you have missed a couple of payments, your credit rating will begin to be affected your credit score will likely drop considerably, which will make it extremely difficult to refinance your current loan.
Every mortgage lender in the country has a Loss Mitigation department established with the sole purpose of reducing lender's losses on loans. They work to put homeowners who fell behind on payments on a repayment plan to bring your loan out of default. The best thing about Loss Mitigation alternative is, unlike a new loan, it doesn't require a credit approval.
If You Do Get a Workout Plan, Beware of the Challenges
The loss mitigation departments at mortgage lenders tend to be understaffed, especially right now with mortgage defaults on the rise. The employees in these departments do their best but have very little time to devote to each homeowner's case file. This means that lenders tend to offer you a standard repayment plan which may not meet your needs, for example, the monthly payments will likely be too high for your budget and the time limit given to get back on track far too short.
With the difficult situation you are in, you may be tempted to take this repayment plan offered to stop foreclosure; however, this is generally just a short-term solution. Since the terms of the repayment plan are not a realistic fit for your budget, you will as likely or not be facing foreclosure again in a matter of months.
How to Hire Foreclosure Workout Professionals
One of the simplest, yet little known ways to get a lot better outcome through the Loss Mitigation process is to hire an experienced professional to do the work for you. These are companies that have experience of negotiating literally thousands of workout cases for owners in default. Some have established working relationships with the Loss Mitigation departments of many mortgage lenders nationwide.
They'll review your finances with you to come up with a realistic repayment plan that'll give you a lot more time and keep your payments at a comfortable level to assure your successful completion of the plan. They have insider's information about variety of programs a given lender may have. In some cases they may be able to negotiate an interest reduction to lower your loan payments.
Given your financial difficulties, you may think that hiring a professional service like this will be beyond your means. Thankfully, this is not the case. Most of these companies charge a flat fee, usually equivalent to a monthly mortgage payment. Since they can often negotiate a deferral on your next mortgage payment, their services often pay for themselves.
If Lender Mediation Is Not An Option
If the lender mediation process won't work for you, then you will need to sell your home to keep from having a foreclosure record on your credit report. If there is enough time before foreclosure, you best bet is to list your home with a realtor, this will let you get a better price for your home. If your foreclosure is imminent, however, you may have no alternative but to sell to an investor. These companies can buy your home quickly, just make sure that they have the means to close the deal quickly, before your home goes into foreclosure.
While you're trying to think of how to stop foreclosure on your home, you're getting near constant calls, letters and knocks on your door from foreclosure investors.
These investors are in the business of buying homes from people who are in danger of losing their homes to foreclosure and then selling these properties for a profit. They know that many people who are facing foreclosure have no alternative other than to sell their home for whatever price they can get.
While on a surface it may seem like a good idea to sell your home to these foreclosure investors in somecases, but before you do so you should look into the alternatives. Definitely do not sell your home to one of these investors before checking out your other options, such as rearranging your loan.
Rearrange Your Loan To Stop Foreclosure
Once you have missed a couple of payments, your credit rating will begin to be affected your credit score will likely drop considerably, which will make it extremely difficult to refinance your current loan.
Every mortgage lender in the country has a Loss Mitigation department established with the sole purpose of reducing lender's losses on loans. They work to put homeowners who fell behind on payments on a repayment plan to bring your loan out of default. The best thing about Loss Mitigation alternative is, unlike a new loan, it doesn't require a credit approval.
If You Do Get a Workout Plan, Beware of the Challenges
The loss mitigation departments at mortgage lenders tend to be understaffed, especially right now with mortgage defaults on the rise. The employees in these departments do their best but have very little time to devote to each homeowner's case file. This means that lenders tend to offer you a standard repayment plan which may not meet your needs, for example, the monthly payments will likely be too high for your budget and the time limit given to get back on track far too short.
With the difficult situation you are in, you may be tempted to take this repayment plan offered to stop foreclosure; however, this is generally just a short-term solution. Since the terms of the repayment plan are not a realistic fit for your budget, you will as likely or not be facing foreclosure again in a matter of months.
How to Hire Foreclosure Workout Professionals
One of the simplest, yet little known ways to get a lot better outcome through the Loss Mitigation process is to hire an experienced professional to do the work for you. These are companies that have experience of negotiating literally thousands of workout cases for owners in default. Some have established working relationships with the Loss Mitigation departments of many mortgage lenders nationwide.
They'll review your finances with you to come up with a realistic repayment plan that'll give you a lot more time and keep your payments at a comfortable level to assure your successful completion of the plan. They have insider's information about variety of programs a given lender may have. In some cases they may be able to negotiate an interest reduction to lower your loan payments.
Given your financial difficulties, you may think that hiring a professional service like this will be beyond your means. Thankfully, this is not the case. Most of these companies charge a flat fee, usually equivalent to a monthly mortgage payment. Since they can often negotiate a deferral on your next mortgage payment, their services often pay for themselves.
If Lender Mediation Is Not An Option
If the lender mediation process won't work for you, then you will need to sell your home to keep from having a foreclosure record on your credit report. If there is enough time before foreclosure, you best bet is to list your home with a realtor, this will let you get a better price for your home. If your foreclosure is imminent, however, you may have no alternative but to sell to an investor. These companies can buy your home quickly, just make sure that they have the means to close the deal quickly, before your home goes into foreclosure.
About the Author:
It's time for you to stop foreclosure of your home through loss mitigation. Don't delay and start looking for a referral to loss mitigation .
posted by Debt Consolidation Loan at
2:52 PM
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