Loss Mitigation
Avoid foreclosure with loss mitigation With the housing market in disarray, homeowners are in need of help. Each month, we see record increases in homes that go into foreclosure. Fortunately, loss mitigation is becoming a more widely available option that is assisting homeowners in all 50 states.
What is loss mitigation?
Loss mitigation is made up of many different programs, all with varying purposes. For example, a loan modification is aimed at keeping someone in their home and making the mortgage more affordable whereas a short sale involves the sale of the home but with debt being forgiven by the lender.
Why doesn't everybody just get a loan modification?
Unfortunately, not everybody can continue to afford their home at any level that the lender can offer. In that case, the homeowner needs an option to sell the home. Short sales are easily the most popular method of doing so as a foreclosure alternative. They allow the homeowner to sell his or her home at a price that is less than what is owed with the debt usually being washed away.
Are lenders actually willing to use these programs?
They are. Foreclosure is typically viewed as the most expensive and least desired option for lenders. They will review a properly presented package and will agree to whatever makes the most sense financially. This usually means something other than foreclosure.
Why are so many homes foreclosing if loss mitigation is such a great option?
A lot of homeowners just don't know. Either no one told them they had options or they didn't seek help. Either way, there's a strong effort to change that and help as many homeowners as possible. There are companies that can negotiate on your behalf and almost always can find a solution, but you need to be proactive if you need help. The people that are getting help are the ones taking action.
Loss mitigation is something every homeowner even marginally in trouble should pursue. Staying on top of your situation will likely ensure you never have to worry about foreclosure.