Loan Modification Services

Attention Real Estate & Mortgage Professionals. If you would like to learn how to add loan modification or loss mitigation services to your business email Mike Boyd at mboyd44@gmail.com or call 678-796-3964. The key is to work with an honest, ethical attorney based mitigation company that will work in your client's best interest. These services will help save your clients money and help you increase your bottom line at the same time.

Loss mitigation is the process of trying to stop a home foreclosure before it occurs. The loss mitigation process can be led by either an employee or representative of the lender or a third party that works strictly for the best interests of the home owner. Keep in mind that the employee of the lender will work in the best interest of the lender not the borrower. The loss mitigation process is often better handled by a third party due to their experience and the ability to deal with the lending company without a personal attachment to the situation. There are many companies offering these services today. Many are not attorney based and have no experience with RESPA or TILA violations. They simply entered the market to capitalize on the current market conditions. Working with an attorney based company with past experience with RESPA and TILA and mortgage closings should be your first choice.

Loss mitigation was introduced as a collaborative effort between the federal government and the mortgage industry. The program was established to help home owners that were facing the loss of their homes due to delinquent payments. A professional loss mitigation counselor will work with the home owner as well as the lender to find an alternative to foreclosure.

There are several options when it comes to loss mitigation and the main focus should be to keep the home owner in their home. Typical services include:

 Loan Modification
 Repayment Plan or Forbearance Agreement
 Foreclosure Refinance
 Short Sale
 Chapter 13 Bankruptcy
 Partial Claim
 Special Forbearance
 Deed-in-lieu of Foreclosure

A loss mitigation counselor should try to set up a loan modification plan or a repayment plan that is realistic for the home owner as well as the lending institution. It is important that the plan be realistic when it comes to the home owners ability to repay the modified payment plan and to cover other expenses with a small cushion left over for miscellaneous living expenses. It does not help the borrower or the lender if the loan is modified and the borrower cannot make the new payments on time.

Loss mitigation first goal is to keep the home owner in their home. If that does not seem like a realistic outcome, every attempt should be made to help the home owner get the most for their home as they possibly can before a foreclosure sale takes place. This may include deed-in-lieu of foreclosure, a partial forbearance or a short payoff if a qualified purchaser can be found.

Taking the time to know what the borrowers rights are in the foreclosure process, it is possible to use the loss mitigation process to help the borrower get back on track with mortgage payments and give them an opportunity to get their home sold instead of going into foreclosure. In today's market Lenders want to keep the home owner in their home and it is up to the home owner to show that they will be able to catch up or maintain the mortgage payment in the future. Most companies will require the borrower to complete a financial worksheet and to provide proof of income.

The real estate and mortgage professinal that can help clients explore their options to avoid foreclosure will be in high demand in today's market.