Loss mitigation is a term used to mitigate the loss of the bank, while providing a solution for the homeowner to help avoid foreclosure. Lenders have loss mitigation divisions that are focused on foreclosure mitigation to protect the interest of the banks. At Integrity First Financial Services, we offer loss mitigation services to help homeowners find an alternative to foreclosure.
There are four options available for foreclosure loss mitigation, two options to help you stay in your home and two that will help you walk away with as little impact on your credit as possible. A loan modification is an agreement between the lender and the borrowers to modify the original note to bring down the payments as an alternative to bankruptcy. A forbearance agreement is a plan for repayment of the default over a period of time.
In some cases, foreclosure can’t be avoided. If this is the case, there are two alternatives to just walking away. A short sale, or pre-foreclosure sale, allows borrowers to sell the home for less than what is owed. The lender agrees to accept less than the full amount owed on the loan. Deed in lieu of foreclosure can help you by voluntarily turning the property over to the lender.
At Integrity First Financial Services, we offer loss mitigation services to help homeowners avoid foreclosure and find the right solution for bankruptcy. Please browse our website to learn more about our services and contact us by telephone or through our website for loss mitigation help.