What is foreclosure?
This is where the lender regains the property it has financed. Since it typically costs banks over $50,000 per home to foreclose, lenders are often willing to negotiate a new agreement.
What is loan modification?
Loan modification is changing one or more of the terms of your loan which can include your interest rate, changing from an adjustable mortgage into a fixed rate, extending the term of the loan (example: from 30 yrs to 40 yrs.), and or capitalizing the past due payments. Modification allows you to bypass refinancing fees.
How long does the process take?
The process often takes 90 days or more, start to finish. The time depends on the caseload of each particular lender/servicer/investor.
What is loss mitigation?
Loss mitigation is the process of forming a new agreement between the homeowner and lender, helping save homes while improving credit.
How much time do I have?
The time to act is now. Once you have received a Notice of Default, you are already at risk.
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