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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