Loss Mitigation Departments Can Help!

The following article by Joseph Chatham, as featured at http://www.glgroup.com/News/Loss-Mitigation-Efforts-are-Key-to-Foreclosure--Soft-Landing--10058.html , briefly touches on the benefits, motivations, and necessity of "Loss Mitigation" efforts by lenders. I encourage my readers to read the article and, if your are falling behind in your mortgage payments, to contact the Loss Mitigation Department of your lender. TMA features a static "box" on the right hand side of the page providing numerous lenders' loss mitigation department phone numbers. Please see the number of options Mr. Chatham writes about and talk to your CPA, attorney, and your loss mitigation counselor to figure which option is best for you and your family. TMA will work on getting details of each option for it's next few articles.

MortgageMaster

"Loss Mitigation is a process too few understand and that all involved with the mortgage world should become well acquainted with. Effective Loss Mitigation efforts will definitively change the face of this "crisis". Loss Mitigation and the renewed efforts of loan servicers to minimize foreclosures is a much needed breath of fresh air. While all the analysts are searching for the best short plays or the next opportunity for their respective hedge funds, this writer contends that the more powerful and creative the loss mitigation departments, the softer the foreclosures impact on the overall market, and the stronger the recovery of the companies involved. The downward spiral created by the self-fulfilling prophecies of foreclosure doom can be greatly alleviated, and to a great extent stopped, by screaming from the rooftops, "we can try to work this out". Unfortunately, the media loves to focus on the everything bad. As a keenly aware mortgage broker (specializing in sub-prime and Pay-Option-ARM's, nonetheless), I have yet to hear a positive piece on servicers' efforts to help borrowers stay in their homes. Remember, everyone loses in a foreclosure! The clients lose their home. The investors lose. The evil lenders' images are tarnished. Home values suffer. And, lastly, the overall markets decline. NO ONE WANTS TO FORECLOSE. Lenders are eager to help where it makes sense. So, in fact, are non-profits, municipalities, and maybe, some states or the Federal government. Encouraging borrowers to contact their lenders early and proactively may be a huge part of the solution. Unfortunately, most borrowers will not contact their servicers for fear of "tipping them off" and triggering foreclosure activity. If borrowers were to contact their servicers can offer a slew of opportunities to help:

-Loan Modification (called Recast for FHA)
-VA Loan Modification (VA loans only)
-Forbearance
-Deed in Lieu of Foreclosure
-Short-sale
-Partial Claim
-Repayment Plan(s)"

Joseph Chatham
President
Chatham Street Mortgage Services
http://www.chathamst.com/
1-866-4CHATHAM