What is Loss Mitigation?

A process to avoid foreclosure; were the borrower is helped through programs, who has been unable to make loan payments and is in danger of defaulting on his or her loan. Reduction in risk of home mortgage foreclosure. The Agency’s loss mitigation approaches generally fall into two broad categories -- (a) those which, if utilized successfully, would result in curing the default and retaining homeownership and (b), those which would result in the relinquishment of homeownership, by means of a sale to a third party or by a voluntary conveyance of the property by deed in lieu of foreclosure.

Do mortgage companies and the federal agencies connected to the mortgage loan help represent the homeowner?

They will help a homeowner complete the application, but they do not represent the specific interests of that homeowner. A Loss Mitigation Counselor does represent the specific interests of the homeowner and will actively seek to present the best case possible to rectify the mortgage delinquency. In contrast, this method of assistance provides a better outcome for the homeowner than simply helping a homeowner fill out forms. 

How long before I know if you are successful?

Once your application has been submitted, it will take approximately 15 – 30 days to receive a response from your lender. Throughout the process your lender may send you documents critical to your application and will require your immediate attention. If you receive any documentation from your lender and are not sure what to do, immediately contact us so that we may discuss the matter thoroughly and inform you of your responsibilities.

Can I do the same thing myself?

Yes. However, you are gambling with the most important piece of investment of your life. It is always best to hire a professional rather than experiment on your own. One of the most costly mistakes you can make is submitting an application that is not prepared correctly. In the same way that you hire an attorney when you are involved in a car accident or injured at work, you should hire a professional to handle your foreclosure problem.