Loss mitigation is a program in which the homeowner has a chance of stopping the foreclosure on his home due to non-payment of mortgage installments. So, if you have been unable to pay your lenders and if your home is in danger of being foreclosed, you can initiate the loss mitigation process and stop the lender from putting a foreclosure on your home.
You can contact a loss mitigation company or a loss mitigation counselor who specializes in handling cases similar to yours. They can act as a bridge between you and the lender and try to sort things out so that your home does not slide out of your hands. However, they will first have to be given the details of your mortgage agreement before they can proceed.
The key word here is money, since if the bank has already rejected your revised repayment plan or is not confident of your ability to repay the loan, then unless you come up with the money, even your loss mitigation company or counselor might find it difficult to convince the bank to rethink stopping the foreclosure process, which they would have put into motion. If you have arranged for the money, then you can inform your counselor or the loss mitigation company and they could now talk to the bank to agree to alternative plans in repaying the balance amount of your loan.
Alternatives could be in the form of smaller monthly installments spread over a longer period, so as to make it a bit easy for you to repay the entire loan back to your lender. Your lender might be open to alternate plans since he too might not want the home to go into foreclosure, where he could suffer a significant loss, not to mention the tedious paperwork that would be involved in repossessing the home from you and selling it to a new owner.
In the case you are unable to come up with a concrete plan to arrange for some fresh finance on a long term basis to repay your outstanding loan, then there could be very little that your counselor or the loss mitigation company could do to help you out. In that case you should try to ensure that you get the most value out of your home before the bank sells your home off. If you can manage to find a buyer on your own then you can try to convince your lender to go in for a short payoff or a deed in lieu of foreclosure so that you can at least get a decent deal on your home.
The loss mitigation company or counselor can guide you as per your rights as a borrower in this deal-gone-bad, but they are not magicians and their job is to first get convinced about your ability to pay back the loan amount under revised terms before they can convince your lender to do the same. You will need to pay them for their services and if you do not have any money at all or do not have any plan for raising any finance in the future to pay off your outstanding loan then it would indeed be very difficult to save your home.
So try and talk to some of these companies or counselors before losing all hope. Since you will have to pay their fees at closing and that too if the loss mitigation company or counselor has helped you to solve your problem, then in case you do not see any other way out of your current dilemma, then you should take a shot.
Initiation of the foreclosure process by your lender is not the end of the world. By availing the services of an experienced loss mitigation company or a mitigation counselor, you might learn of other alternatives, which could help you hold onto your home as well as pacify your lender and convince him to agree to an alternate repayment plan.
If you are a homeowner in trouble with your house, we may be able to help solve your problems. Sign up for our Seller List at http://www.OffersInYourInbox.com.
[tags]Real Estate, Selling, Foreclosure, Pre-Foreclosure, Short Sales[/tags]
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