Saint Clair Homes

Loss Mitigation refers to the mortgage company’s programs/department designated to assist people with bringing their mortgages up to a current status once there is a delinquency.

If you find that you need to call your mortgage company because you are delinquent, ask for the Loss Mitigation Department or sometimes known as the Loan Counseling Department.

Loss Mitigation Options:

Repayment Plan: the delinquent amount is added to your regular payment, and spread out over a 3 -12 month period (sometimes longer).

Loan Modification: delinquent amount is added to your principal balance. Sometimes the term of your loan is extended to 30 years and/or the interest rate adjusted.

There are many individuals and families that are struggling financially during our economic crisis. Whether the struggle is due to job loss, decreased wages or the rising cost of living; the end result can be devastating. As a Realtor, the devastation that I see is the loss of one’s home. There is hope. If you find yourself in jeopardy of losing your home, don’t wait until you can’t make your mortgage payment, to get help. Call a Realtor. There are several options available to either help you keep your home or at least to help your credit from being totally destroyed. The rest of this article will be dedicated to the foreclosure timeline to give you a window into the future should you be facing financial difficulty.

It’s not bad enough that the financial institutions made bad loans: being the majority of the reason for our economic state. Now there are businesses and individuals (professionals) that are taking advantage of the hardships of others. When seeking advice or help with your real estate needs – do your homework!! Nobody works for free however; nobody should be charging exorbitant fees for services to help those that are already facing a financial crisis.

The Troubled Assets Relief Program (TARP) was supposed to be the government’s answer to help stabilize the financial market, in which the subprime mortgage crisis is a large part. Simply put the TARP buys difficult- to value assets from hurting financial institutions and banks enabling them to “balance” their accounts and avoid further loses. The manner in which this is accomplished is complicated and a bit difficult to understand. In addition to its complexity, there have been some changes made to the initial program. To learn more about TARP how it works, the effectiveness, etc….

Due to the economic climate and the state of the Real Estate market this is not only pertinent but very important issue. If you find yourself to be among one of the thousands of people that just can’t weather the economic crisis that we’re in, this may help you in your decision of what to do about your home. Nobody wants to lose their home but, sometimes it’s inevitable. The decision between seeking the assistance of a Real Estate agent for a short sale and throwing in the towel and going to foreclosure is a tough one. Whichever route you choose, your credit will be affected.