Your current
mortgage deficiency will be skillfully
negotiated for you, and essentially you will end up paying a
fraction of the debt. Generally, we reduce
the amount owed to your lender by
40-60%.
Settling of
Your Debt. Once you have retained our services, we will commence the Service.
we will advise Client of all good
faith offers made by creditors and debt collectors, and of
their acceptance of any offers made by Foreclosure Group. We will not settle any
account without any approval of Client, who has absolute
discretion to accept or reject any settlement offer. We can
only settle a debt once the full funds are available in
Clients settlement account.
How we do it:
1.
You need to come up with some amount of money to apply
towards the deficiency. We typically refer to this as
the “Contribution Figure” or a "Good Faith Payment". There
are methods of bringing your mortgage of foreclosure
without bringing any money to the table, however to ensure a
favorable outcome you should plan on offering the
lender some monetary offering. This will usually be
a small fraction of the total mortgage deficiency. Mortgage Companies always require this money
as a down payment for a number of reasons:
- To bring the loan
current quicker
- To prove to the lender
that your are sincere in wanting to get the loan caught
up.
- They also need to use
this as a penalty to getting behind. If they didn’t they
would have a lot more people
missing payments without legitimate reasons.
2.
You need to document your current financial situation to
show that you can afford the Monthly payments. This is very
tricky… you need to be accurate and honest as they may not
accept changes once it is submitted. We develop a
Personal Financial Portfolio for each of our clients. This
shows your income versus your expenses in a form that is
easy to understand and highlights your ability to repay the
loan.
3. The last step is to develop a letter that explains
why you fell behind. This letter is referred to as the “Hardship
Letter.”
We have many examples of letters that the Mortgage Company
is looking for. This letter must be honest and appeal to
them to show that you want to stop the foreclosure and that
you deserve another chance. We roll all of these items into
what we call a “Work-out Package”. This package is then
presented to the Mortgage Company in a format they can
easily
understand which allows them to make a decision quickly and
responsibly.
Most Mortgage Companies will consider a Loan Modification,
Deferment, Forbearance or a Repayment Plan as a first
option to quickly bring the loan current. Our foreclosure
specialists will use one of those options or perhaps a
combination
of those or any of the options below to develop your
personalized strategy to stop Foreclosure.
I
really want to save my home, What should I do?
-
The best advice you will
ever hear when you know that you are having financial
trouble is
COMMUNICATE, COMMUNICATE, And COMMUNICATE!
-
Open and respond to
notices in the mail
-
Contact your mortgage
holder immediately and ask them for help
-
Contact a housing
counseling at 1.877.750.1433
-
Know what kind of gap you
need to manage by making a list of your monthly spending
and comparing it to your monthly income.
-
Reduce your spending by
eliminating a monthly payment like a cell phone, cable
TV or a second car
-
Take stock of your assets
like jewelry, investments, or whole life insurance that
may help bring you up to date on your mortgage payment
-
Do not sign over anything
unless you have a reputable homeownership counselor
review it
-
If you find you are 30
days past due, your lender will expect the past payment
along with the current payment, late fee and
interest. Do not spend money that you have allocated for
the mortgage on other things. You will need this money
to work
yourself out of the problem eventually.
-
If you feel that keeping
your home is not an option, contact the company that
services your mortgage, which is the name on
the statement that you write your mortgage payment to,
and ask for a person that can help you explore your
options to minimize your loss.
How To Save My Home
-
The Workout Process
It’s common practice to begin the workout process with the
servicer, asking specifically for the loss mitigation
department (if one exists). Always keep track of the time,
date and person you talked to. Confirm all agreements in
writing.
This document answers many of the questions you will need to
ask and have an understanding of when you speak to a loss
mitigation specialist. A workout package from the lender
will require the following list of documents:
-
Completed Application Form
-
Pay Stubs of Income
Verification
-
W-2 Forms from the
Previous Year
-
Completed Budget
-
Hardship Letter Explaining
Situation
It may take a loss
mitigation specialist (your lender) a few weeks or even
months to report back to you with the decision about
the workout plan. It’s important to regularly check with
them about the status so that the request doesn’t get lost
in the meantime.
Also note that the collection department may still be
“attempting to collect a debt”, so you should be aware that
the phone calls won’t
stop when the loss mitigation department is working thru a
solution.
Unresponsive and unhelpful servicers are out there,
regardless of the incentives provided by mortgage insurers
or investors.
When a servicer/lender does not respond to a work-out
proposal it is appropriate to contact the owner of the risk.
Exactly who this is
can be difficult to figure out. You can look at original
mortgage documents ~ a charge for mortgage insurance and who
it is paid to
should be on the settlement statement. If you have private
mortgage insurance (PMI), you may be entitled to a partial
claim. Make sure
you know who your insurance provider is.
Under the 1995 amendment to
the Truth in Lending Act the servicer is required, upon
written request, to provide you with the
name, address and telephone number of the mortgage holder. |
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