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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