Loss Mitigation Programs That Stop Foreclosure Fast! 1-888-660-Mortgage
Stop Foreclosure with Loss Mitigation Programs
Loss mitigation programs were established by the federal government and the mortgage industry in order to stop home foreclosures. They help foreclosure victims in default on their mortgages to find alternatives to home foreclosure. Every homeowner's situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure. Our extensive experience and solid working relationships with mortgage lenders allows us help you avoid the common pitfalls that many homeowners encounter while trying to work things out directly with their lender. After performing a thorough assessment of your personal finances and analyzing your lender's loss mitigation policies our professional loss mitigators will negotiate with your lender to get you the best possible solution to your home foreclosure problem. We can help you save your home and credit history through a variety of loss mitigation options:
REPAYMENT PLAN
If you have incurred a short term financial hardship and your loan is two or more months past due, your loss mitigation specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible. Apply here if you want to talk to a loss mitigation specialist about participating in this program.
SPECIAL FORBEARANCE
(FHA loans only)(Type I and II)
If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months. Type II - can be utilized in an unemployment situation whereby the promise of future employment is present. We have done VA loans that resulted 27-month repayment plans. Apply here if you want to talk to a loss mitigation specialist about participating in this program.
LOAN MODIFICATION
If you have incurred a long term financial hardship, our office can assist you in supplying the appropriate information to lender to take the appropriate measures to modify the term(s) of your mortgage. This could lower the interest rate and/or extend the term of the loan resulting in lower payments. There are costs and fees associated with a modification that you will be responsible for. All property taxes must be current or you must be participating in an approved payment plan with your taxing authority to be eligible for a modification. Any additional liens or mortgagees must agree to be subordinate to the first mortgage. All requests are subject to your lender's approval. Apply here if you want to talk to a loss mitigation specialist about participating in this program.
VA LOAN MODIFICATION/REFUNDING
A refunding is when the VA buys your loan from the lender. Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate Apply here if you want to talk to a loss mitigation specialist about participating in this program.
PARTIAL CLAIM
(FHA mortgages only) (Some Freddie Mac Investor loans)
The loss mitigation specialist may assist in requesting a partial claim if you qualify. You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2nd mortgage) between you and the Secretary of Housing Urban Development. The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest. The partial claim can be for no more than 12 months of past due payments. Apply here if you want to talk to a loss mitigation specialist about participating in this program.
Foreclosure Procedures
Procedural rules governing bank and government foreclosures
Foreclosure is governed by state law, and different states can observe different procedures.
Four foreclosure methods
1. Strict foreclosure:the lender, mortgagee, automatically becomes full owner of the property when a borrower, mortgagor, defaults.
2. Judicial foreclosure or public sale:court decides on title questions and approves each step of the foreclosure procedure.
3. Foreclosure by power of sale.
4. Foreclosure through the deed in lieu method.
Who keeps the title?
In some states, property owner or borrower transfers the mortgage interest to the lender as security under the mortgage agreement. There is also mechanic's or materialmen's lien that exists until the builder gets paid by the developer for materials and labor. Learn more how title search and title insurance works for you.
Steps in foreclosure procedures
Court actions
Lender or claimant sends the borrower a summons or foreclosure complaint.
Borrower responds to prevent foreclosure and explains the problems at a hearing. Property owner must properly appear and file responsive pleadings in the foreclosure action. Borrower can get the lawsuit dismissed if he or she makes the entire payment due during court proceedings.
Borrower does not respond and court accepts a default. Court summarily enters judgment in favor of the lien holder against the property owner. A judgment of foreclosure is entered. Lis pendens notice is issued. Lis pendens is filed by the lien holder and contains information on type of foreclosure and description of the property. Borrower can still pay the full amount and get his or her house back during this redemption period. Judicial sale of property
Judicial sale of property
If borrower does not pay or redeem the property within the redemption period, he or she loses the ownership. Title examination is conducted to determine if there is any additional third party defendant.
Court must find that (a) obligations exist between the property owner and the lien holder, (b) the property owner is in default of the performance of his obligations to the lien holder, and (c) the lien holder is entitled to assert his lien or interest against the real estate.
Lender sells the real estate property at a public sale or auction and gets paid for the full loan amount. Balance, if any left, goes to the borrower or previous owner. If the sale amount is less than the loan amount, borrower still owes such balance to the lender. This amount is determined as a result of deficiency proceedings.
If the borrower has a right of redeem, sale notice indicates such right of redemption and the redemption value of the property.
As a final step, court transfers the deed to the purchaser or new owner after all taxes, sale-related expenses, and other additional defendant are paid.
