Foreclosure
Loss Mitigation Options
Foreclosure/Loss Mitigation Programs to assist homeowners:
Forbearance Plans: Temporary suspension or reduction of mortgage payments to provide financial relief.
Special Forbearance for Unemployment: Assistance for borrowers who have become unemployed, allowing for temporary relief until employment is regained.
Loan Modification: Permanent changes to the loan terms, such as reducing the interest rate or extending the loan term, to make payments more affordable.
Partial Claim: An interest-free loan from HUD to bring the mortgage current, with repayment due when the home is sold or refinanced.
Pre-Foreclosure Sale (Short Sale): Selling the home for less than the owed amount, with lender approval, to avoid foreclosure.
Deed-in-Lieu of Foreclosure: Voluntarily transferring ownership of the property to the lender to avoid foreclosure proceedings.
Foreclosure
Loss Mitigation Process
Contact Your Mortgage Servicer: Reach out to your lender as soon as you anticipate difficulty making payments. They will guide you through the available options.
Provide Necessary Documentation: Be prepared to submit financial documents, such as income statements and hardship letters, to support your case.
Evaluate Available Options: Work with your servicer to determine the most suitable loss mitigation option based on your financial situation.
Implement the Chosen Solution: Once an option is selected, adhere to the agreed-upon terms to resolve the default and avoid foreclosure.
