The mortgage buzzword of the day is LOSS MITIGATION!

The mortgage buzzword of the day is LOSS MITIGATION!

The bank does not want your home right now, even if you have tons of equity!

With all of the foreclosures that the banks are dealing with these days, they would much rather lower your rate and make your mortgage more manageable for you regardless as to how late you currently are and even if they have already filed an NOD on your property.

This is why almost every lender has either beefed up their existing loss mitigation department or created a well staffed one, if they didn’t have one already.

Some have even outsourced to companies that will actually visit you at your home or work place because most borrowers in trouble are so overwhelmed by calls, mail solicitations and Realtors knocking on their door looking for a short sale listing that they just go into shutdown mode until it’s too late for anything positive to occur.

Even if you’re not late they would still much rather work with you and lower your rate without a costly refinance then run the risk that you might have a financial hiccup and become just one more problem they will be forced to deal with down the road.

If you’re upside down, obtained your original loan by “untruthful” means, don’t have good/steady income or don’t really even live in the home, your lender will in most cases turn a blind eye and offer a benefit.

In short, everyone should jump on this band wagon because it will reduce your interest rate, may reduce your principal balance, give you a month or two off from making your regular mortgage payment and does not affect your credit rating!

It’s quite frankly a benefit offered that’s a no brainier that unfortunately will not last forever with these same terms and conditions. 

The lenders all have their “Sweet Spot” and required forms that will determine weather they will work with you or write you off as a lost cause so don’t try it without the aid of someone that knows what their doing.