Loss Mitigation Process l Mortgage Loan Modification

Loss mitigation is the attempt to reach an agreement between you, the homeowner, and the lender, to prevent foreclosure, allowing you to keep your property while protecting your credit history. If you are a distressed homeowner, Krebs Financial will work with you to help you avoid foreclosure and mitigate its associated negative credit impact. If for whatever reason you are currently behind on your mortgage payments, or foresee that you will soon be unable to continue making your payments, KF will show you your options. We will negotiate on your behalf to obtain more favorable and affordable mortgage terms and payments. We know what lenders are looking for and we’ll prepare your case accordingly.  We know how to communicate with negotiators to get positive responses and favorable negotiated terms for you. We can lessen your financial burden and save your credit from the negative impact so you can get you a fresh start.

Some loss mitigation options you may qualify for:
Mortgage Loan Modification – This program adds the delinquent interest, taxes and insurance payments to the unpaid balance. If you qualify, you may be able to get help by extending the repayment of the past due amounts over the remaining term of your loan.

Government Loans – This program attaches a lien on your property for the delinquent amount.  This is basically a non-interest bearing loan with no monthly payments and is payable directly to the Federal Government only after you pay off the first mortgage, sell your home, refinance or move.  Or, a monetary “advance” to cure a delinquent mortgage (similar to Government advances above).

Special Forbearance – This program by the Federal Government to allow for a 12, 18 or even 36 month repayment term or suspension of mortgage payments for a period of time while you become stable again.

Re-Set Modification / Short Refinance – If your loan amount is more than the value of the property, in some cases the principle can be reduced, which can result in lower monthly payments and a lower interest rate.  

Temporary Rate Reduction – If you are having “temporary” financial problems which prevent you from making your mortgage payments for a foreseeable period of time… this program temporarily reduces the rate on your mortgage, lowering your payments in the predetermined period of time.  Generally, demonstration of income upon expiration of the rate reduction period is required (i.e., recall from a job after a lay-off or returning to work from an injury).

VA Modification – Offered by the Federal Government on VA-backed mortgages.  The delinquent amount is added to the principal balance and the loan is re-amortized, generally resulting in lower payments and a lower interest rate.

Pre-Foreclosure Sale – This option allows you to sell your home and avoid a potential foreclosure along with the derogatory credit rating that is associated with this action.

Deed-In-Lieu of Foreclosure – To help avoid foreclosure, this program that allows you to transfer your interest in the property to the lender, loan investor or government.

Short Sale – To help avoid foreclosure, this program allows you to sell your home for less than what you still owe on the mortgage.  Your lender agrees to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage.  

The KF Loss Mitigation Process:
First we will review your current situation and ask you to provide us with the necessary documents to support your case, such as tax returns, bank statements, paystubs, credit card, utility bills, property tax statements, etc.  We will compile the documents and prepare your case for submission to the lender(s).  The documents will serve as evidence to support our negotiations with the lender(s).  Depending on your individual situation, your case may be submitted to various governmental relief agencies, your lender(s), as well as the insurer of your loan (i.e., FHA, Fannie Mae, Freddie Mac) in order to get you the best possible relief.

Also keep in mind that here at KF, we are experienced at handling even the most complex and difficult cases.  So, if you’ve already been turned down by your lender or other companies that claim to provide loan modifications, don’t give up just yet, contact us now!

Please feel free to call Krebs Financial about your situation to find out your options.  Foreclosure situations tend to be time sensitive, so don’t hesitate to contact us.