Loss Mitigation Offers Alternative to Foreclosure
The foreclosure crisis in America has affected millions of families. Loss mitigation programs have been established in response to problems in the mortgage industry in an effort to prevent foreclosures. Loss mitigation specialists work together with the homeowner and the lender to find an alternative to foreclosure.
The worst thing to do when facing problems making payments is to ignore the problem and not answer the telephone. There are alternatives available to homeowners and loss mitigation specialists can usually help find a manageable solution to help you get back on track. The idea is to help the homeowner reinstate the loan and avoid foreclosure.
Loss mitigation options include loan modification and repayment plans. The idea is to create a payment that will allow the homeowner to catch up on delinquent payments and avoid foreclosure. When negotiating modification or repayment of the past due payments, it is important that the agreement be based on the individual’s ability to pay.
Sometimes homeowners accept the first offer made by the lender and agree to a repayment schedule that is not realistic. Later, they find they are unable to keep up with the payments and fall into default again. Professional loss mitigation services are tailored to the income of the homeowner with a goal to set a monthly payment that the homeowner will be able to meet in the future.
Foreclosure has long lasting affects on your credit score and ability to obtain credit in the future. A consultation with a loss mitigation specialist will help you understand your rights and the options that are available to help you avoid foreclosure. The counselor will discuss your financial situation, income and other factors to help you find the best alternative to foreclosure in your situation.
The first thing to determine is whether you want to stay in the home and will be able to make the payments in the future. If the homeowner has sufficient income to make future payments and just needs to eliminate the default, a repayment plan or loan modification may be the best solution. Loan modification is intended to lower the monthly payment to a level that the homeowner can afford.
If the homeowner is unable to make the payments necessary to reinstate the loan, there are options to the foreclosure process. Deed in lieu of foreclosure allows the homeowner to give the property back to the lender and avoid the foreclosure process.
Short sale is another option to foreclosure that allows the homeowner to sell the home for less than the full amount owed on the mortgage. The lender accepts the reduced sale price on the mortgage. There can be tax consequences to short sale, so get professional advice to help you make an informed decision.
Integrity First Financial Services LLC offers professional loss mitigation services to help homeowners find an alternative to foreclosure. A loss mitigation specialist will work with you to determine the best solution for your circumstances to help you avoid foreclosure and stay in your home. Visit our website to learn more about our loss mitigation services.