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Home :: Foreclosure Options
Foreclosure help – alternative options
Consider Your Options
Borrowers do not fall behind on their mortgage obligations unintentionally. Life sometimes comes with hardships, some of which can cause financial instability and uncertainty.
However, there are options available to those in trouble; true and helpful options that are encouraged and endorsed not only by your lender but by the federal government as well. Your lender does not want to own real estate nor do they want to own your home. Real estate is simply the means to an end for any lender. The lender (bank) wants to loan money and receive a small interest payment in return. The real estate serves as the security for such a loan.
When a borrower falls behind in their mortgage obligations the lender will step up their efforts to bring the loan current. This may include letters and telephone calls placed by the lender to the borrower to inquire if the lender may be of some assistance with regard to the current delinquent obligation. However, most borrowers deem the letters as threats (which in most cases are thrown away without ever being opened, not to mention read), and the telephone calls are treated and avoided like the plague.
It is true that some telephone calls are from the “collection department” of the lending institution, and that some of the persons calling are under-trained and unskilled in their efforts. Some collectors are paid based on the amount of money they can collect. These “collection calls” can leave the borrower with a bad impression of the lender and can serve to quickly turn a bad situation worse by completely alienating the borrower.
The point is we understand and, more importantly, your lender also understands. This is the reason most lenders provide a more educated and well trained employee to help borrowers work through a delinquent loan situation. This employee is called a “loss mitigator”.
A loss mitigator has been well trained in financial loss prevention and negotiations. You see, for each and every loan that is foreclosed upon, the lender can expect to lose anywhere from $30,000.00 to $40,000.00 (depending upon the underwriting conditions of the loan when it was originated). The loss mitigator is taught to cut the losses for the lender whenever possible.
It is with this loss mitigator that most of your communications and all of your negotiations will take place. Once your lender is properly contacted, your file will be assigned to a lender employed loss mitigator. All negotiation and settlement efforts will be directed towards this loss mitigator.
Now for the options:
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