Avoid Foreclosure through Loss Mitigation

If you are one of the many homeowners facing tough choices in today’s economy, we understand. We know that looking for assistance with your mortgage and deciding where to go for help can be confusing and frustrating. And our loss mitigation counselors are here to help.

Whether your financial hardship or current situation is temporary or more permanent, options are available and our loss mitigation or foreclosure counselors can certainly help guide you by providing sound advice and proper information in order for you to  be able to make informative decisions. Even if you have decided you want relief from the responsibility and the burden of your mortgage payments, now’s the time to take action before it’s too late.

We can help! – CALL 1-800-254-4100 now for a Free Consultation

CCMS is qualified to counsel residents of the following states:  CLICK HERE

Know Your Options

There are many options for homeowners who are struggling with their mortgage payments. Here’s an overview of some options that may be available to you:

Refinance

A new loan  with new terms, interest rates and monthly payments  that completely replaces your current mortgage. Even if your home value has decreased, you may be able to refinance your loan. Refinance benefits:

• Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
• No negative impact to credit score
• Stay in your home and avoid foreclosure

Repayment Plan

An agreement between you and your mortgage company that lets you pay the past due amount on your mortgage payments over a specified time period in order to bring your mortgage up to date.   Repayment plan benefits:

• Catch up on your past due payments over an extended period of time
• Less damaging to your credit score than a foreclosure
• Stay in your home and avoid foreclosure

Forbearance

An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time. Forbearance benefits:

• Have time to improve your financial situation and get back on your feet
• Less damaging to your credit score than a foreclosure
• Stay in your home and avoid foreclosure

Modification

An agreement between you and your mortgage company to change the original terms of your mortgage ‘such as payment amount, length of loan, etc.  Modification benefits:

• May reduce your monthly mortgage payments to a more affordable amount
• Less damaging to your credit score than a foreclosure
• Stay in your home and avoid foreclosure

Short Sale

A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off your mortgage balance with the proceeds. Short sale benefits:

• Eliminate or reduce your mortgage debt
• Assistance for relocation may be available
• May be able to recover your credit score and get another mortgage faster than if you went through foreclosure

Deed-for-Lease

A program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure, see below) in exchange for release from your mortgage loan and payments. You can then rent the property back at an affordable rate and remain in the home as a tenant. Deed-for-Lease benefits:

• Stay in your home and neighborhood no need to move or relocate
• May be able to recover your credit score faster than if you went through foreclosure
• Assistance for relocation may be available at the end of your lease
• Avoid foreclosure

Deed-in-Lieu of Foreclosure

With a Deed-in-Lieu of Foreclosure (DIL), transfer the ownership of your property to your mortgage company in exchange for a release from your mortgage loan and payments. DIL benefits:

• Eliminate or reduce your mortgage debt
• May be eligible for relocation assistance
• May be able to recover your credit score and get another mortgage faster than if you went through foreclosure

These are just some of the options you may have.  Our loss mitigation/foreclosure counselors will be able to provide you with more options that may be available in your area such as Florida’s Hardest Hit Funds Program.

Document Checklist for Mortgage Modification

Use this checklist to ensure you have all the information you will need when you speak to your mortgage lender or housing counselor for a mortgage modification or other options:

• Most recent income tax return with all schedules and W-2s.
• Two most recent bank statements.
• Two most recent pay stubs (if you receive them) or documentation of income you receive from other sources.
• Monthly mortgage statement showing the mortgage lender information and mortgage loan account number.
• Information about other mortgages on your home, if applicable.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on your other debts (such as student loans and car loans).
• Estimates of other monthly expenditures (such as utility bills, food expenses, insurance payments, and entertainment expenses).
• It may also be helpful to have a hardship letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.), if applicable.

 

Current Homeowner Assistance Programs

The following are just some of the Homeowner Assistance Programs currently available. Your lender may have their own program in addition to some of the homeowner assistance programs offered here. You can contact a counselor 1-800-473-3328 who can assist you in finding a qualifying program which is best suited to your circumstances. You can also contact us by using our online form.

	Watch -Know Your Options – Interactive Options to Avoid Foreclosure Video by Fannie Mae. You will be taken to the KnowYourOptions.com website produced by Fannie Mae where you will need to click the “Get Started” button to view the video.	English – (requires Adobe Flash Player).
	Conosca sus Opciones – Opciones Interactivas para evitar perder su casa – Interactive Video by Fannie Mae. You will be taken to the KnowYourOptions.com website produced by Fannie Mae where you will need to click the “Get Started” button to view the video.	Español – (requires Adobe Flash Player)

Fannie Mae Programs:

Home Affordable Modification Program (HAMP) – Provides assistance for homeowners who are having difficulty making their mortgage payment for reasons not related to unemployment. If qualified, options will be based upon whether the assistance needed is temporary or permanent and may include changes to the interest rate, loan balance or loan terms.

Temporary Hardship – Forbearance or Repayment Plan – Ineligible for HAMP but experiencing a temporary hardship.

Long-Term or Permanent Hardship – Forbearance or Modification - If you are ineligible for HAMP, your mortgagor may consider any permanent modification to the terms of a mortgage loan that make it more affordable, including changes to the interest rate, loan balance or loan terms.

Second Lien Modification Program (2MP) – Provides assistance if your first mortgage was permanently modified under HAMP and you have a second mortgage on the same property.

Home Affordable Foreclosure Alternatives (HAFA) -Provides assistance with a short sale or a deed-in-lieu of foreclosure in order to avoid foreclosure on a loan.

Non-HAFA Preforeclosure Sale – Long-Term or Permanent Hardship - Ineligible for HAFA and have been considered for all other home retention alternatives.

Non-HAFA Deed-in-Lieu of Foreclosure – Long-Term or Permanent Hardship – Ineligible for HAFA and have been considered for all other home retention alternatives including a short sale.

Deed-for-Lease Program - For borrowers who are eligible for a non-HAFA Deed in Lieu and who wish to remain in the property as a tenant. If your loan is not owned by Fannie Mae, contact your mortgage company to see if they offer a leasing option.

________________________________

Non-Fannie Mae Programs:

VA-HAMP - Provides assistance for homeowners who have existing loans insured or guaranteed by the Department of Veterans Affairs.

Home Affordable Unemployment Program (UP) – Provides assistance for homeowners who are having difficulty making their mortgage payment due to unemployment.

Home Affordable Refinance Program (HARP) – Provides assistance loans for homeowners who are current on their mortgage but have been unable to obtain a traditional refinance due to the decline in value of their home.

Principal Reduction Alternative (PRA) – Provides assistance for homeowners whose homes are worth significantly less than they owe.

FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance) – Provides assistance for homeowners who are current on their mortgage but owe more than the value of the home.

Treasury/FHA Second Lien Program (FHA2LP) – Provides assistance for homeowners by reducing or eliminating a 2nd mortgage if your first mortgage company has agreed to participate in FHA Short Refinance.

Hardest Hit Funds (HHF) - Provides monetary governmental assistance for homeowners who live in states hit hardest by the economic crisis and who are having difficulty making mortgage payments due to unemployment or under-employment. Funds have been allocated to 18 states plus the District of Columbia and each program varies from state to state.