Loss Mitigation

Options for Borrowers in Foreclosure

You may have had an unexpected expense or circumstances beyond your control which forced you to miss your mortgage payments. If this is the case, many of our clients will discuss your situation to determine if there are options available to help you avoid foreclosure. These options are voluntary and can include:

• Extension/Stipulation: You would pay a determined portion of your delinquency payments and the remaining portion of the arrears would be added to the end of the loan.
• Loan Modification: A loan modification is a written agreement between you and the lender that temporarily changes the terms of the loan. A loan modification includes adding the arrears to the end of the loan
• Loan Modification w/ Intent to Sell the Property: A loan modification as stated above, but during the period of the modified terms, you agree to list the property with a realtor and sell the property.
• Deed In Lieu of Foreclosure: You would transfer ownership of your home to the lender. You would be given a reasonable period of time to move from your home. (In some cases, the lender will pay some or all of your moving expenses)
• Reinstatement of your Loan: You would pay the total amount necessary to bring your loan current (including but not limited to late fees, tax advances, legal fees, etc.)
• Pre-foreclosure Short Sale: This means you would sell your property prior to the foreclosure. If the price you are going to sell at is less than the total due, some of our clients, if you qualify, may agree to accept the sale proceeds to satisfy some or the entire amount you owe. Our clients must approve any offer that is less than the total amount due on the mortgage before an offer is accepted.

Contacting our client or this office will not suspend your obligation to make your mortgage payments. This office will continue all lawful collection and foreclosure activity unless and until a workout plan has been completed and agreed to by our client and you. You may be responsible for any and all legal fees and expenses incurred through this action. Your particular circumstance will determine whether any of these loss mitigation programs are right for you. It is possible that you may not be eligible for any of them. We strongly recommend that you consult an attorney to preserve your legal rights.

Pursuant to federal law, we are a debt collector and any information obtained will be used for that purpose.