Loss Mitigation with a Real Estate Expert

Many home owners in Phoenix, Arizona are concerned about all of the foreclosures going on in the country today. However, they needn’t be worried as loss mitigation to avoid foreclosure is available to them if they know where to look. Many lenders are now working with home owners in difficult positions to find loss mitigation through loan modifications and the short sale of their home. There are many positive things to be said about short sale as a method of loss mitigation for the home owner.

Your lenders loss mitigation department can help you come out of your current financial situation without too much negative effect. When you contact your bank’s loss mitigation department, you should tell them that you are having trouble and are seeking a loan modification or that you intend to short sell your home. Using one of these two techniques in conjunction with your bank’s loss mitigation department can ensure that you have a home to live in without being thrown out on the streets. The loss mitigation department at your bank has long used the loan modification process to help home owners get bank on track with their mortgage payments. However, short sales of homes has becoming a widely accepted way to avoid foreclosure and many loss mitigation departments are acceptant of this process to cut their losses and keep costs down for the bank.

Some thing to consider when you contact the loss mitigation department…

Although many lenders in Phoenix, AZ will tell you that the loan modification process is your best option, it is, in fact, their best option. They urge home owners to use loan modification because it nets them more money in the long run. The problem with loss mitigation through a loan modification is that most home owners can not afford to make the payments of a new loan schedule just like they couldn’t with their old payment plan. Also, if you do find a loan payment that is affordable through loan modification from the loss mitigation department, you will find yourself paying more money over the long haul because the bank often extends the life of your home.

It is also important to consider why you would want to pay the mortgage on your home that is no longer worth the original loan amount. For example, you took out a $250,000 mortgage to buy your home (valued at $250,000 at the time of purchase) but the value of your home is now just $100,000.

With this type of upside down mortgage, the short sale is certainly the best option for you. With the help of a real estate expert knowledgeable in the short sale process, you can often times sell your home for its current market value and use the entire offer amount to pay off your current mortgage loan. Despite the fact that the offer doesn’t cover the full payoff amount of your mortgage, the bank will accept it as payment in full.

Have a real estate expert explain the details of a short sale transaction to understand the full benefits. Loss mitigation through short sale of your home is clearly the best option.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Using a Mortgage Short Sale Program

A mortgage short sale program in Phoenix, Arizona is a service offered to many homeowners of the Phoenix Arizona area who are not able to make the payments on their mortgage with their current lender. The home owner wants to stop or avoid foreclosure. Mortgage short sale program essentially means selling your current property, which you have a loan for, to a seller at a lower price than the amount that would pay off your mortgage. The mortgage short sale has been proven to be very helpful for the homeowners who want to keep from doing major damage to their credit.

Some Features of the MORTGAGE SHORT SALE Program:

1. The mortgage short sale provide relief to all the homeowners in Phoenix, AZ who are in a difficult financial situation.

2. Mortgage short sale is a quick solution to avoiding foreclosure proceedings.

3. The home owner using a mortgage short sale can get bank on their feet in a shorter time period.

Benefits of a MORTGAGE SHORT SALE are:

· You have the ability to get loans from a bank or lender sooner if there is not a foreclosure on your credit record

· The mortgage short sale relieves you of debt and your mortgage would be settled with a smaller amount that if you ran the course of the payments.

· The buyer will get a good deal on your home that is probably in move in condition.

MORTGAGE SHORT SALE Process for Property Owners:

· Contact your lending institution to get the rules and guidelines of a mortgage short sale. We recommend that you find a real estate agent that has experience in dealing with a mortgage short sale.

· Your real estate agent can help you provide the bank with all of the necessary documents needed to execute a mortgage short sale.

· The lender will look at the documentation that specifies the proposed offer for sale of the property, current loan amount with your lender including overdue payments and fees, your real estate agents commission and fees that is taking care of the mortgage short sale.

· The home owner will need to write a hardship letter to the lender noting the reasons the need to execute a mortgage short sale in your situation. Along with your hardship letter you should also include the following; current and past bank statements, income documents such as pay stubs and the like to show the bank that you need to use the mortgage short sale program and that you can not make the mortgage payments.

· Your lender will probably negotiate on the sale price of your home with the real estate agent that you have chosen and finalize the purchase agreement that will be compared to the property value according to the markets current status.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Consider a Mortgage Short Sale to Save Your Credit

Most things in Phoenix, Arizona today revolve around credit. Just ask a person that has poor credit or no credit at all. Poor credit or no credit can keep you from buying a car, renting an apartment or even getting a job. If you are a home owner facing the loss of your home, a mortgage short sale can save your credit. A mortgage short sale should be the first thing you consider in lieu of bankruptcy or foreclosure of your home.

The mortgage short sale process in Phoenix, AZ is probably something that you have never heard of or know little about. Although the process has been around for years, it has not been widely used until recently with the collapse of the banking industry and the housing market. The mortgage short sale can help home owners get out of their mortgage liability and retail relatively good credit.

Home owners who have a mortgage that is greater than their home’s current value can qualify for a mortgage short sale. There are very few prerequisite that need to be met to utilize a mortgage short sale. First, you must be late on your payments. It also helps if you have little to no savings, because you will be asking your lender to take a loss on the loan.

In most cases, the owner will have the balance of the home “forgiven” as soon as the home is sold in a mortgage short sale. In order to apply for a mortgage short sale, you must contact your bank and you should also contact a mortgage short sale specialist to help you through the process. Your lender will request some documentation and information so you can be approved.

It is highly recommended that you find a real estate expert with experience dealing in mortgage short sale procedures. Lenders are more likely to deal with a person like this than with the home owner. And, obviously, the real estate expert can expedite the sale of your home.

When it comes to a mortgage short sale, your credit score will not be tarnished as much as if your home went into foreclosure. When your mortgage short sale is complete, your credit report will say "pre-foreclosure in redemption" and may reduce your FICO score by around 100 points.

With a foreclosure, your credit report will have a higher giant impact of at least a 300 point reduction on your score. This fact alone should be sufficient reason to execute a mortgage short sale.

Because of this impact on your credit score, you can resume your life without the burden of poor credit in as little as two years. The result of a foreclosure will take you at least ten years to rebuild your name and credit score. Without a respectable credit score, your only option in maneuvering around this world is to pay cash for everything.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Loss Mitigation Part 2 The Best Way To Avoid Foreclosure

With the abundance of horror stories surrounding Loss Mitigation Departments in Phoenix, Arizona and their inability to keep up with an insane number of requests from defaulting customers, there has to be another way of loss mitigation that can avoid the lender completely.

We truly have an option for loss mitigation that can lead you aware from those horror stories and to a place that will, in the end, result in a better outcome to your current financial situation.

*** Editor’s note: It is important that your banks loss mitigation Department knows about your financial troubles. We are not suggesting through the process described below that you stop speaking to your bank or lender. We are merely suggesting that you find a way to avoid foreclosure by means of another process. The bank and its loss mitigation department will still be involved. However, through the process below, you can remove much of the work from their already full plates.

One of the most successful means of loss mitigation in Phoenix, AZ in recent months has been the short sale of your home. With the help of a real estate agent familiar with the short sale process, the loss mitigation department can play a smaller, but still important role in getting you out of your current mortgage problems.

With the short sale as a means of loss mitigation, a real estate expert will help you avoid foreclosure and he or she will help the bank trim their losses, which is exactly what the loss mitigation department does.

Short sales as a means of loss mitigation are prevalent with home owners that find themselves in the following situations…

-unable to pay their mortgage for a variety of reasons, most commonly loss of job or higher payments because of Adjustable Rate Mortgages

-home owners in upside down mortgages

How does a short sale work?

-you, as the home owner in search of loss mitigation, find a real estate expert to help you with the short sale of your home

-the real estate expert lists your home on the market and finds a buyer that will probably make an offer that is not enough to pay off the mortgage (Bear in mind that you are not searching for a low offer, but with falling home values, it is almost a certainty that the offer will be less than the payoff amount of the mortgage)

-the real estate expert and the home owner contact the loss mitigation department and notify them that they would like to execute the short sale of the home.

-the loss mitigation department, in an effort to cut their losses (which is what they are designed to do) will accept the lower offer as payment in full and forgive the remainder of the balance due on the mortgage.

The benefits of this process are too numerous to mention. It is strongly recommended that you look into this process with a qualified real estate expert that deals with short sales.

Loss mitigation help is in high demand during these trying times. Lenders have departments to handle loss mitigation, but they are overwhelmed. We strongly suggest that you contact a real estate expert regarding the short sale of your home today.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Loss Mitigation Part 1, Banks Overwhelmed

Before the spring of 2009, there was no standard set of rules for loan modifications in the United States or in Phoenix, Arizona.

Each lender in Phoenix, AZ had its own rules as to how they wanted to handle loan modifications. In most situations, the loss mitigation through loan modification process heavily favored the banks. Their main concern was to find a way to recover the money that a home owner was behind in payments. Generally, the banks would either increase the monthly payment or extend the term of the payments so that those late payments would just be paid off at the end of a loan. Usually, when the loss mitigation through loan modification process called for increased payments, the foreclosure of a property was only delayed by a few months, because there was no way that they could make a higher payment.

A new program, announced in the spring of 2009 by the Obama administration has changed the loss mitigation through loan modification process. The guidelines for loss mitigation through loan modification have changed. This program mandated that mortgage payments be reduced to just thirty one percent of the home owner’s income. For many Americans, this meant that they could once again afford to pay their mortgage payments. The loss mitigation through loan modification process, appeared to be a great helping hand.

However, the program only covers mortgages through Fannie Mae, Freddie Mac and the FHA, but it is widely thought that most other lenders will choose to follow the guidelines for loss mitigation through loan modification as laid out by the Obama Administration. The Making Home Affordable Modification Program has placed the focus right on loss mitigation through loan modification. Many in danger of losing their homes to foreclosure didn’t even know what loan modification was.

Since the program’s inception, there have been scores of people flooding into banks to request loss mitigation through loan modification. With all of these people facing the time crunch to avoid foreclosure, this has placed the burden of a national housing crisis squarely on the backs of the Loss Mitigation Department at your bank and every bank.

Before the housing crisis and the crash of the real estate market, foreclosures were not very common. Most lenders and mortgage providers kept a staff of just a few people to handle loss mitigation. Foreclosures were not very common and loan modifications were even less common.

However, the times have certainly changed. Banks and lenders have increased the size of their loss mitigation departments exponentially. This has meant thousands of people needed to be trained to work with loan modifications and all of the other tasks that fall to the loss mitigation department at a lending institution.

There are horror stories abound regarding customers having to hound and hassle Loss Mitigation Departments to get their paperwork pushed through to avoid foreclosure. Loss Mitigation Departments are currently still understaffed, under experienced, and overworked.

Read Part 2 of our Loss Mitigation Report to Find a Better Solution to avoiding foreclosure.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Many Loss Mitigation Departments Open To Short Sale

I’m sure that each of you loves the home in Phoenix, Arizona that you live in and would never want to lose that home to foreclosure. However, with the state of the economy and the housing market, many Americans are preparing to face losing their homes. The good news is that foreclosure in Phoenix, AZ is avoidable through loss mitigation. The key is to take action before the bank does. As soon as you miss one payment, the clock starts ticking. So, when you realize that you can not make payments on your home mortgage anymore, it is time to contact the loss mitigation department at your bank. Their job is to help keep the bank from losing money.

With a foreclosure, the bank stands to lose a lot of money. Between the expenses of a foreclosure and the low price that the bank will get when it sells the home at foreclosure, a loss mitigation department never wants to face foreclosure. The loss mitigation department works out to make it a win-win situation for both the parties.

With loss mitigation, as with any problem, certain steps can be followed to help you work through the problem and come out of it with the best possible outcome.

-Admit you have a problem. Be honest with yourself about your financial situation. You can not solve the problem with the help of loss mitigation unless you recognize that there is a problem.

-Information and Communication can bring this stressful situation to a more manageable state. Know what you are getting into, who can help you, and how they can help you. Be open and honest with your lender.

-Get your ducks in a row. Know the facts of your financial situation. How much do you owe? How much do you make? How much can you afford to pay? And be able to support the answer to each of these questions when dealing with a loss mitigation department.

In the past, a loss mitigation department did the majority of its work through loan modifications. However, the short sale has become a popular tool for home buyers recently and loss mitigation departments are willing to work with the short sale as a means of cutting their losses.

The short sale as a means of loss mitigation is proving to be a very effective solution for people that want to avoid foreclosure and losing their home. With a short sale of your home, you as the buyer can cut your losses and get out of a bad mortgage situation with a very small penance to pay on your credit score. The bank, in true loss mitigation department style, also manages to cut its losses and keep costs down by avoiding foreclosure.

To take advantage of short selling your home as a means of loss mitigation, contact a real estate expert that deals with short sales today.

Do you have questions? Read the Short sale FAQs.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com

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Seeking Loss Mitigation, Consider a Short Sale

Loss mitigation is the process of helping home owners that are delinquent in paying their mortgage and are close to foreclosure. Loss mitigation is used by home owners in Phoenix, Arizona to save their home and of trying to stop the foreclosure before it happens. It is an intervention created to help homeowners avoid foreclosure through third party that helps with loss mitigation. Even though you may think that loss mitigation is a new process, it has been around for many years, and has the potential to save lots of money and headaches.

Foreclosures are destroying the housing market in Phoenix, AZ. That is why loss mitigation is so important. Because foreclosures are higher than ever, loss mitigation specialists are busier than ever. With ARM still going up, we will very likely see the highest foreclosure rates in history. Loss Mitigation is the best method of halting the foreclosure process leading to the sale of your property at auction. The reason for Loss Mitigation is foster an agreement between the homeowner and the bank that put a permanent end to the foreclosure process.

Homeowners often believe that they can refinance with another lender or even with their same lender. However, because there is a good chance that you have already missed a few payments, your credit score will likely not allow you to refinance. Therefore, the only real option available to you is loss mitigation.

With loss mitigation, the lender can help the borrower avoid foreclosure. With each different situation and lender, the rules of loss mitigation are different. One of the more popular choices for loss mitigation is the short sale of your home. Remember that the home owner and the bank BOTH stand to lose thousands of dollars if your situation goes to foreclosure. So, the short sale can be a very effective loss mitigation technique.

With both lenders and borrowers looking for ways to come out of this with as little damage as possible, loss mitigation is on the forefront of both party’s minds. So, taking advantage of the benefits of a short sale can be a win-win situation for both parties. While the bank will still be taking a loss in most situations and the home owner will have a black mark to their credit score for a few years, it is considerably better than the alternatives.

People searching for loss mitigation are growing in numbers. With banks not wanting to take on the responsibility of owning your property, now is the time to consider a short sale as a means of loss mitigation. With foreclosure and bankruptcy being the dark ending for many people, loss mitigation in any manner is ultra important during your time of need. Because no ending to the financial situation you are in will be without pain, it is crucial that the loss mitigation technique you choose is one that eliminates as much of the loss and heartache as possible.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

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