How to Successfully Use Loss Mitigation To Stop The Foreclosure Process

Use loss mitigation to save your home from foreclosure.

With the number of home foreclosures that have been occurring over many years, some home owners are scrambling to stay in their homes and get help from their lenders. Using loss mitigation can help you keep your home.

Things You'll Need

• Mortgage documents
• Pay stubs
• Utility bills

Instructions

1. Loss mitigation can successfully be used to stop the foreclosure process but you must be proactive. If you contact your mortgage holder when you first realize that your payments have become more than you can afford, the company will be much more willing to work with you than if you wait until you are one or two payments behind.

2. Start by calling the customer service line of your mortgage holder. Provide the customer service representative a brief idea of what you are calling for and ask if the mortgage company has a loss mitigation department. If not, ask for a supervisor.

3. Once you are in contact with someone that can actually make decisions, they may ask for several documents to support the basis of your request. You may be required to forward copies of your pay stubs or utility bills. The mortgage company needs to determine that you are now unable to pay your current mortgage payment. The documents you provide can speed the loss mitigation process so it is important to supply these documents in a timely manner.

4. If your mortgage holder agrees to work with you through the loss mitigation process, it is very important to read each document that is sent to you carefully. It is important to understand how the penalty for missed or delinquent payments will be addressed.

5. If your current mortgage holder is uncooperative in helping you to avoid foreclosure a new mortgage may be an option of you are not seriously delinquent. Adjustable rates have ballooned in recent months and a fixed rate mortgage could offer some relief from higher payments.

Tips & Warnings

• If you feel that you were misled or are a victim of mortgage fraud, it is best to seek the advice of an attorney.

• Carefully read each new document before signing. If you do not feel comfortable discerning the legal terms used in the documents, seek the assistance of an attorney.

• Don't pay for loss mitigation. Do your best to successfully negotiate a loss mitigation plan without paying a third party for the service.

References

• Supreme Court of Ohio: Foreclosure Mediation in Ohio: What You Need to Know
• Foreclosure Fish: How To Get A Mortgage Modification