Preventing Foreclosure Through
Loan Modification

 

In today's economic environment home foreclosure has become a serious problem. Not only is foreclosure a problem for millions of Americans, it is a huge problem for lenders as well. Preventing foreclosure through Loan Modification has not only become more common, it has literally turned into an industry.

Although the process of loan modification may not be familiar to the individual that is in need of it, it is very familiar to banks, loan service providers, and mortgage lenders. Nearly every one of these organizations have established a Loss Mitigation department designed to negotiate with homeowners that are experiencing difficulty making their mortgage payments.

Many people are reluctant to speak with their mortgage lender primarily because of past bad experiences with debt collectors. Speaking with a lender's loss mitigation department concerning a loan modification is a completely different type of conversation. Your lender may have more to lose than you do - talk to them.

 

Loan Modification Makes Sense For You And Your Lender

The important thing to remember about seeking a loan modification is that you and the lender both have a common goal...you both are about to experience a substantial loss. Your loss is in the form of your home. The lender's loss is in the form of equity on their balance sheet. Before the current economic crisis lenders were reluctant to do much more than put off a payment or two. In today's world their mortgage portfolios are under siege by falling home prices, foreclosures, and the exodus of mortgage investors from the market. The cost of foreclosure to a lender can consume over $60,000 per home or from 30% to 60% of the home's total value.*

If your house payments are unaffordable due to illness, job loss, or other changes in your financial position then you are probably candidate for a loan modification. If you are in jeopardy of losing your home to foreclosure then time is an important factor. Take some positive action on your behalf as soon as possible.

Whether you are planning on negotiating your own loan modification or are considering hiring a loss mitigation specialist we hope that your visit to our site will be a positive and informative experience.

*A Report on Lenders’ Cost of Foreclosure from the Mortgage Bankers Association- May 2008

 

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