Loss mitigation programs
Three loss mitigation programs that can fix your mortgage problems now
You have options even when it seems like nothing can save you from a bad mortgage. These programs are a coordinated effort between the federal government and the mortgage industry to assist borrower in need. If you find yourself struggling to pay your mortgage every month, these programs are the answer you've been searching for.
Your situation is unique and so are policies set forth by each lender with regards to these programs. As such, our experience and understanding of these options will prove valuable in getting you qualified for the right program.
All we need to do to get started is conduct an assessment of your situation, fill out the necessary paperwork and AMLG can begin negotiating with your lender to take advantage of one of these options.
- A Loan Modification is a permanent change in one or more of the terms of your loan creating a brand new contract between you and your lender. We will work with the lender to create a new contract that will reinstate your loan and give you a fresh start by restoring your credit status. The new terms will be shaped by your ability to pay and can include adding the delinquent balance to the loan, reduce the interest rate, extending the years due, and sometimes reducing the balance owed.
- A Short Sale is a negotiated sale of your home at a price below what you owe on the mortgage. If you face an uncontrollable hardship that makes it impossible to afford your home and because of a market fluctuation you owe more then your home is worth, then we will work with your lender to negotiate for a short sale. By approving a short sale, the lender can avoid a lengthy and costly foreclosure, and you can pay off the loan for less than you owe. This option is beneficial for you as it significantly lessens the impact to your credit versus foreclosure and can often be removed completely. Additionally, if the home is owner-occupied, the forgiven debt is tax-free.
- A Short Refinance is similar to a Short Sale in that the lender agrees to refinance the current loan at a lower dollar amount than what the owner currently owes. The difference here, of course, is that the lender is agreeing to a refinance rather than a sale of the home. This tends to be a quicker process than trying to sell the home and has the benefit of allowing you to remain in your current residence. Again, the impact to your credit is less than if you were to choose to go through the foreclosure process.