This is a good flow chart of what the process is when homeowners go into default with their mortgage. There is other options besides Foreclosure and Short Selling. You can also have your loan modified if you fit the “Program Criteria”, There is the “Making Affordable” plan that has been instituted to help out homeowners that have had hardships in their income, along with a adjustable rate to make things worse. A Lender doesn’t want to foreclose on the house, they loose at least 200-300k just in the process alone, not including the loss in the property. They are motivated to keep you in, but overwhelmed so you have to stick with them to get it done. There are some Law offices that will help with the “Loss Mitigation” Process. They are around $2500 to $3600 for their Retainer fee. I would use them as a last resort if you are not getting anywhere with your lender, it seems like lenders get more motivated when there is attorneys involved. If you need a recomendation on a good law firm that specializes in Loss Mitigation, I can refer you. Please check out the link below to get a worksheet for loss mitigation company. If you have any questions on this stuff, please let me know, Leave a comment, or email me at jeremy@southwestboise.com
thanks
Jeremy E
PS here is the link to the . Loss Mitigation Application Worksheet
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