Category Archives: Loss Mitigation

Stop Home Foreclosure Before You’re Evicted

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Posted by on July 16, 2010 – 6:49 am
Filed under How To Stop Foreclosure, Loss Mitigation, Short Sales

There are lots of ways to stop home foreclosure, but once you’ve received a Notice of Default, your choices become more limited. It is obviously better to take preventive measures, as it’s much harder to stop home foreclosure than to avoid it. But if you’ve failed to work out a mutually beneficial payment schedule with your lender or you’re simply unable to pay off the needed amount of money, the procedure of foreclosure will be inevitably started. In this case you still have some options to mitigate your losses.

Sell your home before the process is over.
A good option is to sell your property before the bank takes it away.  You will have to persuade your lender to put off the foreclosure process while you’ll be trying to sell your house in a tough real estate market. If you manage to succeed with this task you’ll get the money needed to pay off your debt and will be able to stop home foreclosure. Also, it will save your positive credit score.

Consider a Short Sale.
A short sale takes place when your lender allows you to sell your house at a lower price than the amount of money needed to cover the whole debt. Getting permission for a short sale and a discount on your mortgage often takes months of exhausting and frustrating negotiations with the bank. Here you might want to turn to the help of experienced professionals who will carry out negotiations on your behalf and help you stop home foreclosure. Why should the bank help you? Generally, lenders lose a lot more money if the property is sold through a foreclosure, and they know it perfectly well. So, it’s easier and less trouble to short sale a house than to wait until it goes to auction and pay endless fees. A short sale is a good option for those people who are ready to lose their home but want to avoid negative hits on their credit history. Actually, a short sale will also affect your credit rating but not as badly as a foreclosure.

Deeding the property back to lender
You can give your house back to the lender to stop foreclosure and they will forgive the balance that you owe. So, you as the homeowner are deprived of any right to property while the bank forgives the whole loan. It’s an effective way to stop home foreclosure, besides, in some cases homeowners are allowed to stay in their houses until they find a new place to live. However, this is not favorable in credit rating terms, as it affects your credit in the same negative way as a foreclosure.

For more information on how to stop home foreclosure contact the professionals at www.SaveMeFromForeclosure.com

Related Blogs

“You can’t look to the government to solve these types of free market problems”

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Posted by on January 14, 2010 – 12:19 am
Filed under Foreclosure Prevention, Loss Mitigation, Mortgages, Short Sales, TV

Here’s a foreclosure segment that aired on NBC’s “The Today Show” on January 13th.

If you’re facing foreclosure, the last thing you want to do is rely on the government to help.

Seek out a company like us at SaveMeFromForeclosure.com to help you with your home, whether you want to try and keep it or sell it.  Watch below:

Visit msnbc.com for breaking news, world news, and news about the economy

How Loss Mitigation May Be The Best Solution To Stop Foreclosure

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Posted by on August 9, 2007 – 10:28 am
Filed under Foreclosure Prevention, Loss Mitigation

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.

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 saddled with another property in its inventory.

One question regarding loss mitigation is whether or not the homeowner should get become 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, then they should seriously consider hiring a third-party to handle the negation 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, and the homeowner may get 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.