What should I do when I get behind in my mortgage?

1. Do not ignore the phone calls and letters from your lender. This is the best way to wake up to a knock from the Sheriff telling you to vacate the home. Take this matter very seriously and work to resolve the problem as quickly as possible. Keep track of all correspondence you receive for later reference.

2. Stay in your home. You may not qualify for help if the house is vacant. Your home, if proved vacant, can be seized. Stay in your home!

3. Contact LMS to discuss what the best solutions are for you. If you are behind in payments, we will correspond on your behalf with the Mortgage Company to get your loan back in good standing. We understand the system, the laws and the chain of events necessary to help you keep your home out of foreclosure. We will gladly walk you through them in a non-threatening way.

DISCLAIMER: PLEASE NOTE THAT WE ARE NOT FORECLOSURE SPECIALISTS AND WE DO NOT WORK WITH ANYONE WHOSE PROPERTY IS CURRENTLY IN DEFAULT "NOD" (NOTICE OF DEFAULT) STATUS. WE WILL HAPPILY REFER YOU TO A FORECLOSURE SPECIALIST IF YOU ARE CURRENTLY IN THIS SITUATION.

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What Are My Options With LMS?

1) Loan Modification: In certain circumstances, an investor may allow us to add the delinquent amount to your loan balance or temporarily reduce the interest rate as well as your principal amount to assist you in curing the default and restoring your credit status.

2) Forbearance/Formal Forbearance: A Forbearance Plan is a repayment agreement between you and your lender. We will review documentation supporting your monthly income and expenses. We will develop a plan and place a proposal in writing providing for payment of one full monthly payment and a portion of the delinquent amount due on your account. The objective of the plan is to allow you to cure your default over a period of time, reinstating your mortgage, while allowing you to maintain your normal monthly living expenses.

3) Short Sale/Pre-Foreclosure Sale: Loss Mitigation Services frequently works with homeowners who, due to a change in employment or other life event(s), can no longer afford their home. The decision to sell your home under these circumstances is difficult; in addition, fluctuation in real estate markets may leave you in a situation where you have little or no equity – or even a loss upon the sale of your home.

A short-sale occurs when you owe more than your home is worth. Loss Mitigation Services may -- with permission from the investor -- assist in the sale of your home under these circumstances in which the investor (mortgage holder) agrees to accept net sales proceeds as full payoff. Investor approval is based upon your financial situation and the current market value of your home.

4) Deed in Lieu of Foreclosure: In the event you have decided you can no longer afford your home and do not want to go through marketing efforts or foreclosure, you may voluntarily return the property to the investor. Loss Mitigation Services would need to verify all lien-holders on the property and we would need a walk-through inspection of the property.

DISCLAIMER: PLEASE NOTE THAT WE ARE NOT FORECLOSURE SPECIALISTS AND WE DO NOT WORK WITH ANYONE WHOSE PROPERTY IS CURRENTLY IN DEFAULT "NOD" (NOTICE OF DEFAULT) STATUS. WE WILL HAPPILY REFER YOU TO A FORECLOSURE SPECIALIST IF YOU ARE CURRENTLY IN THIS STATUS.

It is important to note that the Workout Options available to you may be limited dependent on the following factors:

1. the type of loan that you have
2. which investor holds your note, and
3. which mortgage insurance company insures your loan (if you carry mortgage insurance on your loan)

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What are the right solutions for me?

Our consultants look at every case individually based on your financial situation, past and present. We want to keep you in your home and establish a financial plan that will keep your credit in best standing and also at a level that is comfortable for you. We don’t want to give you a band-aid but a permanent foreclosure solution. Although many options exist, the only one that is right for you is the one that best fits your financial situation.

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What is a loan modification plan?

The term “loan modification” refers to a readjustment of your current mortgage. If you can currently make your regular payment, but you cannot catch up with the past-due amount, we will correspond with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time. Or, if you are unable to make payments at this rate, we will correspond with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A Loan Modification or Loan Restructuring will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.

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What is a refinance mortgage modification?

Depending on your income, credit report, value of your home, and the amount of your equity, we can work with a new lender to refinance your existing mortgage. Although this might be difficult to secure new financing with your current hardship, if you have enough equity in your home, this option might be attractive to a new lender. We have several lenders who we deal with regularly that are willing to give people a second chance.

Although this option may likely create a loan with higher interest rates, a sizable up front fee and a longer time for pay-off, it may be the best option for you. With your home refinanced, you will become immediately current, the foreclosure will cease and you will be able to enjoy your home.

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