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ALTERNATIVES TO BANKRUPTCY

You May Be Able To Save Your Home From Foreclosure With Loss Mitigation

Loss mitigation programs were established by the federal government and the mortgage industry in order to stop home foreclosure.  They help foreclosure victims in default on their mortgages to find alternatives to home foreclosure.  Every homeowner’s situation is unique and each lender has their own policies regarding the use of these programs to stop foreclosure.

Modification
A modification agreement is typically used when the homeowner has the ability to pay some of the past due payments and to continue making future payments, but does not have the funds to completely reinstate the loan. Typically, the homeowner's loan terms are modified in order to resolve the mortgage delinquency and to help homeowners who have a significant reduction of income that severely impacts their ability to pay, and will last past the foreseeable future. This agreement makes the mortgage more affordable for the customer.

Forbearance
A forbearance agreement is a written agreement between the borrower and the lender to enact a payment moratorium due to unforeseen circumstances wherein the property or employment status is affected. At the expiration of the term, the borrower pays the total arrearage in a lump sum payment or elects a repayment plan. This agreement is typically used when borrowers have a short-term reduction of income that severely impacts their ability to pay for a short period of time.

Repayment Plan
An informal repayment plan is typically offered to homeowners with the ability to make the payments towards the delinquency, but not the ability to pay everything that is due at once. A down payment on the arrearage is accepted from the homeowner, the account is segregated from the collection population and monitored separately while the homeowner makes the regular monthly payment plus a predetermined payment towards the arrearage. Foreclosure action is held during this process contingent on the successful completion of the plan. Upon completion of the plan, the loan becomes current.

Short Sale
The homeowner does not have either the desire nor ability to keep the property and is willing to sell the property to satisfy the debt. This option is utilized when the amount owed, less acceptable closing costs to sell the property, is more than the value of the property. The deficiency resulting from the sale is written off.

Deed-in-Lieu of Foreclosure
The homeowner has neither the desire nor the ability to keep the property. The homeowner is unable or unwilling to sell the property. The homeowner is willing to sign the property over to the lender in exchange for stopping the foreclosure action. Deeds in lieu of foreclosure are generally accepted only after all other options have been exhausted.

Extension
The homeowner has the ability to pay some of the past due payments and to continue making future payments, but does not have the funds to completely reinstate the loan. Partial payment is accepted and the balance of the deficiency is deferred until the end of the loan term. This option is utilized when the homeowner's hardship that caused the delinquency was temporary and has been resolved prior to execution of the extension.

Loan Modification
A formal loan extension, renewal or material change in loan agreement (i e. interest rate, amount of installment, and maturity date)
• Capitalize delinquent interest, escrow shortage, legal fees
• Spread over remaining term and extend term, only if necessary to qualify
• Contribution of at least one payment and more, depending on ability
• Subordination agreements may be necessary depending on arrears if there are junior liens
• Convert to required escrow account if taxes/insurance advanced

Forbearance/Repayment Plan
• If arrears, are less than 3-4 payments
• If debtor had previous loan mod
• If debtor defaulted within first 12 months
• Disposable Income is substantial
• Arrearages spread over 12-18 month

Short Sale
Borrower sells property to third party and lender accepts less than the full amount owing on the secured debt as complete satisfaction
• Verification as to other liens that may exist (bankruptcy schedule D)
• Request listing agreement
• Contact information for appraisal
• Request purchase/sales agreement
• Proposed net sheet reflecting amount going to service
• Obtain investor/insurer approval

Deed in Lieu of Foreclosure
Borrower deeds the property to the lender in satisfaction of the secured debt
• Must be faster than a foreclosure action (Texas/Georgia usually not considered)
• Inspection of property performed
• Title search conducted to assure there is no junior lien, judgments

It’s a little known fact that almost every home mortgage lender has a loss mitigation department.  Here’s a list of names and contact information from over twenty lenders.  We welcome further communications from lenders, homeowners and mortgage brokers in order to expand this list.

Loss Mitigation Contacts:                                                  updated February 4, 2008

Altegra Credit Co. Loan Services Gary Fedoronko   
GaryFedoronko@HLS.ML.com
(Home Loan Services) 412-918-7552

Ameriquest Mortgage Co. Tess Hoo            
teresa.hoo@citi.com
(Citi Residential Lending) 714-634-2474 ext 38864

BancorpSouth Carla Hall       
carla.hall@bxs.com
662-620-3644

Boshwit Bros. Mortgage Co. Andrew Boshwit 
aboswhit@comcast.net
 901-272-0100

Chase Manhattan Mortgage Co. No Certain Person
(Chase Home Finance) 800-446-8939

Cimarron Mortgage Co. Ronnie Greenhagen      
ronnieg@ecimarron.com
 601-899-1547 (voice)
 601-899-1502 (fax)

Citifinancial Mortgage Dianne Whatley   
dianne.whatley@citigroup.com
 972-657-3090

Citimortgage John Godinet        
John.j.qodinet@citigroup.com
 301-696-5069
 301-696-4473 (fax)
 
 Leann Luhn              
Leann.luhn@citiqroup.com
 301-696-4267
 301-696-4473 (fax)

Colonial Bank                                
Gerald Banks    Gerald
Banks@colonialbank.com
 800-222-0661

Countrywide Lois Ortiz                
LoisOrtiz@countrywide.com
 214-200-2180

EMC Mortgage     
Michael Brown
214-626-3689

1st Trust Bank for Savings Robin Terry            
robin.terry@maqnabank.com
(Magna Bank) 901-309-7999 ext 4413

First Horizon Leigh Ann Hammon 
Lhammon@firsthorizon.com
 214-441-7329
 
 ShantelI Williams       
shtaylor@firsthorizon.com
 214-441-6013

First Tennessee Carol Wilkerson     
cawilkerson@ftb.com
 865-882-4030

Homecomings Financial Roshum A. Austin                 
roshun.Austin@homecominqs.com
 901-276-0079
 
GMAC Erin Drummer  
erin.drummer@gmacrescap.com  
 214-874-6652

Litton Mortgage Randy Reynolds      
rreynolds@litton.c-bass.com
 713-966-8985

Real Time Resolutions                    
Angela Jump 
Anqela.Jump@RTResolutions.com
214-599-6376
                                                      
Eddie Bonner Eddie.Bonner@RTResolutions.com
214-599-6317

SunTrust Mortgage, Inc. Ann Oley                            
ann.oley@suntrust.com
 804-291-0843

Select Portfolio Servicing Joann Goldman    
joann.qoldman@spservicing.com
 801-594-6338

Wells Fargo Financial Pam Gross 
Pam.Gross@wellsfarqo.com
Wells Fargo Financial Bank 
515-331-9130
866-533-2108

 
Wells Fargo Home Mortgage Kimber Dehning    
Kimber.Dehning@wellsfargo.com
815-577-9008 

Wilshire Credit Corporation          
Stacie Bartlett            
stacie_bartlett@wcc.ml.com
503-223-5600, ext. 7253

HSBC Mortgage Contacts - phone and email

Gaetana.Roush@us.hsbc.com Ch. 7 & Ch. 13 with check digits 0-1 716-651-6683

Pamela.Fininzio@us.hsbc.com Ch. 7 & Ch. 13 with check digits 2, 3, 5, Ch. 11's 716-651-6651

Michael.Ujvari@us.hsbc.corm Ch. 7 & Ch. 13 with check digits 8-9 716-651-6651

Kristen.Palumbo@us.hsbc.com Ch. 7 & Ch. 13 with check digits 4, 6, 7 716-651-6363