Posted on: 13th Jun, 2008 06:50 am
can anyone please explain about the process of loan remediation and loss mitigation
Hello Richosasimohan,
Welcome to the Forum,
This is a simple example of both a loan remediation and loss mitigation.
The process is if your ARM loan is going to be reset or you think you might face foreclosure then you will seek a specialist to help you with the remediation. They will try to negotiate for you lower rate and term. Prove that this hardship that you are in will result in a default situation. You must also prove that your income to support the new loan.
This is something that you can try to do yourself or consult an expert in that field.
Loss Mitigation is where a Loss mitigation counselor works with you if you feel you might lose your home. The counselor will first set up a loan modification plan or a repayment plan that is realistic for the home owner as well as agreeable to the lending institution. Loan modificication may include partial payment with amounts in arrearrs and extension of the loan term to compensate for the remainder of the loan in default.
The loss mitigation process is inplace to avoid going into foreclosure.
Hope this answers your question
Jeanette Smith
Mortgage Planner
Union Mortagage Group
www.umgva.com
Welcome to the Forum,
This is a simple example of both a loan remediation and loss mitigation.
The process is if your ARM loan is going to be reset or you think you might face foreclosure then you will seek a specialist to help you with the remediation. They will try to negotiate for you lower rate and term. Prove that this hardship that you are in will result in a default situation. You must also prove that your income to support the new loan.
This is something that you can try to do yourself or consult an expert in that field.
Loss Mitigation is where a Loss mitigation counselor works with you if you feel you might lose your home. The counselor will first set up a loan modification plan or a repayment plan that is realistic for the home owner as well as agreeable to the lending institution. Loan modificication may include partial payment with amounts in arrearrs and extension of the loan term to compensate for the remainder of the loan in default.
The loss mitigation process is inplace to avoid going into foreclosure.
Hope this answers your question
Jeanette Smith
Mortgage Planner
Union Mortagage Group
www.umgva.com
Thank you Jeanette
