As property foreclosures continue to surge across the country, homeowners and lenders alike are seeking new ways to prevent this from happening. One method is loss mitigation. It is a set of tools the lender uses to stop foreclosure. These may include a pre-foreclosure sale, deed-in-lieu of foreclosure, loan modification, and mortgage refinancing. One main goal of loss mitigation is an agreement between the lender and homeowner to repay past due payments within an agreed upon period of time. Loss mitigation is one method being explored as a means to satisfy the needs of both lender and homeowner.
One of the issues of growing concern in this area is the lack of knowledge consumers generally have in dealing with the lenders. While this can be a straight-forward process for experts, it's all new to consumers... hence the existance of Foreclosure Mitigation Services.
Although the process has been around for years, loss mitigation is considered a new concept to most homeowners. Lenders and property owners alike are looking at loss mitigation as one of many options to try to stop a home foreclosure before it occurs. The ultimate goal for using loss mitigation is about keeping the home owner in their home, and the lender not being burdoned with another property in its inventory.
One question regarding loss mitigation is whether or not the homeowner should get directly involved in the process. Unless the homeowner has the time to spare for not only negotiations during the process, but also educating themselves as well, they should seriously consider hiring a third-party foreclosure mitigator to handle the negotiation process. The key to this decision should always be the time element. The clock is always working against the homeowner in this situation so it is important to take prompt action.
Loss mitigation has proven to be an inexpensive and faster alternative to home foreclosure. The process benefits not only the homeowner, but the lender as well, as it allows the lender to avoid the very costly and time-consuming processes of legal foreclosure action. The homeowner benefits by being able to stay in the home as well avoiding long-term credit damage.
Loss mitigation today means effectively understanding borrower's unique situations and proactively, quickly and consistently responding with the most optimal outcome possible.
Loss mitigation is an intervention program designed to help homeowners save their homes from foreclosure, through third-party negotiations with the lender or investor. Loss mitigation is often the better choice for the homeowner that is trying to save their home from foreclosure.
If you need help or want to help homeowners in your community!
Email me JROBERSON35@AOL.COM OR VISIT ME AT http://jessicaroberson.point2agent.com/AVOID_FORECLOSURE/page_1936734.html
for more details! www/activity7.com
RE/MAX Atlantic - Absecon, NJ
GRI
Jessica, short sales are growing by leaps and bounds in my market. I have gotten the process down pretty good.
Nov 19, 2008 06:11 PM
Anonymous
Thanks Antoniette,
Do you come across home owners that really don't want to sell but feel there is other alternative?
Have these clients attempted to work all possible resolutions before listing and selling the property? I'm finding many have not. I work with many realtors, working their shortsales, and when I begin discussing the mortgage situation with the seller many advise they have not attempted to workout any resolution with the lender. Many have the means to make payments, if the lender was willing to modify the terms. So what do we do, list and sell a property that can possibly be salvage or assist the homeowner in making the right choice in resolving their mortgage situation.
Nov 20, 2008 12:20 AM
#2
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