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Is Loss Mitigation Legal
[August 28, 2008] by Foreclosure Help
Filed under: Is Loss Mitigation Legal

The short answer to that question is yes, loss mitigation is legal. When you drill down a little further you come across a few issues. Who to trust to stop foreclosure the other is can a fee be collected to act as a foreclosure counselor. The first obstacle is finding a foreclosure specialist that can stop foreclosure and save or sell your home. If you are facing foreclosure you are probably a victim of mass mailings and phone calls from companies that make the process sound way to good to be true. They make promises like principal reductions or drop your interest rate to 3%… Well those scenarios do happen but they are few and far between. The only possible way anyone can know what options are available would be to know who the investor on the loan is and their pooling and servicing agreement with the lender/servicer. Many lenders keep the investor private and will not disclose who owns the loan. We all know Fannie Mae and Freddie Mac workout options are but who knows about Wachovia and their process working out World Savings Bank, well we do as well as the agreements with other investors. Ok, so you bought the Loss Mitigation Training Manual. To me that makes you qualified to work with any lender and you get the help from actual loss mitigators.

Now, you have purchased the loss mitigation training manual you are well on your way to becoming one of the top loss mitigation expert in the nation. There is still an issue, in many states you can not collect a fee for doing the work until after the work is complete. Many companies do not work in these states and others kinda wing it and hope they do not get caught. We have run across a company that acts as a third party that assures you get paid for loss mitigation work. The homeowner sends the fee to the loss mitigation holding company and it is held until the work is complete. Once the work is complete the company releases the fee to the loss mitigators that successfully delivered on their contractual agreement. We have used this company for our cases and are really happy with their service. With this company then we are able to work in states that do not allow payments before getting a workout for homeowners. For us this company makes loss mitigation legal.

A pitfall that homeowners facing foreclosure experience when working with a loss mitigation consultant is having a sense of doubt about the home being saved. If the homeowner does not believe that the company can help them, then there is no substantial relationship between the foreclosure company and the foreclosure victim, and the chances for being able to stop the foreclosure process drop dramatically. This is one reason why homeowners should do enough research on the loss mitigation company or other service provider that they work with, and interview several companies to find the one that they feel most comfortable establishing a relationship with.

Homeowners that have contacted us for foreclosure help

City: Lawrence
State: Massachusetts
County: Massachusetts

My fiancee decided to leave in august and has left me to pay mortgage by myself. I am of course working and currently struggling to catch up, My fear is that i end up in foreclosure i have called GMAC several times, !st communication they told me to get a room mate, I have put adds up no response. 2nd communication they told me i could not get on a payment arrangement because i was not reporting late. I advised them i didn’t want to be late & this is why I was asking for help because I knew I would fall behind. They were very rude to me and all I was trying to do is work to keep my home. My fiancee is also on the loan and has just walked away. GMAC mortgage foreclosure

City: Goldsboro
State: North Carolina
County: Wayne

Lived in house for about 3 years. Rented for about 2 years. Had to get a loan with very high interest rate. Only one job with only one check. Wife’s check was used to try to pay all the bills. Husband was out of work due to illness. Husband back at work but still behind in checking account, we need foreclosure help with Ocwen

City: Las Vegas
State: Nevada
County: Clark County

Stop foreclosure in Las Vegas

Due to the economy my husband has had a cut in hours I had to take 2 paycheck loans my power bill has been $500.00 each month for the pass two months. We are barely going to pay August mortgage on the 28th.. my situation has not changed, we have an adjustable mortgage.. possibly going to go up in the next couple of months. We were with option one now our loan has been sold to american home mortgage servicing Inc. stop forcloser

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