How Do You Stop Foreclosure With Loss Mitigation?
Loss mitigation can work to prevent your mortgage servicer and bank from foreclosing on your home and thus salvaging your credit ratings. It is a negotiation process with the holder of your mortgage. Reaching new terms for your mortgage is the purpose of the negotiation. This can be done through loan modifications, short sale negotiations, short refinancing negotiations, giving your deed in lieu of foreclosure, or by accepting cash from the lender in return for the keys to your home. Once you are behind in your mortgage payments, contact your mortgage servicer’s loss mitigation department to let them know why you are behind in your payments. Is there a temporary hardship? or loss of employment? Some mortgage servicers are easy to work with, and some will be reluctant to work with you. If yours is easy to work with, they will ask you for information about your current income and expenses to determine if a workout will be possible and how they can structure a workout for your situation.
