Loss Mitigation: Stop Foreclosure
Preventing Foreclosure through Loss Mitigation Negotiations
As the current economy steadily beats up the American homeowner, many are now or will soon be facing financial hardship. More and more homeowners will find themselves at risk of foreclosure.
Homeowners stop foreclosure through the loss mitigation department. Every mortgage lender has a loss mitigation department or function.
Loss Mitigation – The process and action of minimizing losses in situations where loss has already incurred or is very likely to occur. Mortgage related loss mitigation often results in mortgage workouts such as loan modification or even a mortgage refinance through the Making Home Affordable Plan.
Loss Mitigation results will often allow the Homeowner to stop foreclosure by obtaining a mortgage workout such as loan modification.
Optimizing your opportunity to stop foreclosure and obtain loan modification through the loss mitigation process.
- Make sure that you write and submit a solid hardship letter
- Your Budget should be done correctly and it should convey a financial picture to the loss mitigation department that clearly shows that you can afford your home by a simple and feasible loan modification or other form of mortgage workout.
- They, the loss mitigation department, need to believe that allowing a mortgage workout such as modification or mortgage refinance will make home affordable for you the homeowner. If they do not believe anything can be done then nothing will be done.