Professional help when foreclosure is looming
With another round of government intervention in the mortgage industry and foreclosure crisis, it is fitting to remember what the last round brought us. Not a lot unfortunately. Many homeowners facing the uncertainty of foreclosure have turned to private professionals to intervene.
There are a number of success stories for third party mitigation companies to be proud of. Success for these businesses means someone gets to stay in their home. There is a reason why so many people refer to their house as their ‘home.’
Just one recent example of a success story was this one:
A homeowner with an Indymac loan was straddled with a $2940.00 monthly mortgage payment. Although their existing interest rate was a reasonable 6%, the payment was putting them in jeopardy of losing their home.
This is how it can work
With third party intervention, the result was a payment reduced to $2120.62 representing an $820 monthly savings. The negotiation resulted in a re-amortized term of 40 years with an interest rate of just 3%. The total savings over the life of the loan; $393,600.00. Best of all, the renegotiated loan allows for paying down the principal, which wasn’t happening with the original loan.
Loan modification can help make a bad situation bearable. As a matter of fact, it can turn around the inevitability of foreclosure and save a homeowner from losing their home.
Experienced loss-mitigation experts can intervene on behalf of homeowners to negotiate a more manageable loan payment. There are other success stories listed on this blog.
Negotiators can either work to keep a homeowner in their home or help to preserve credit when a homeowner decides to take the short sale route. Any time these goals are achieved, it is a good day.
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