A foreclosure can be avoided if you approach the loss mitigation department of your mortgage servicer just in time. We are providing you here a contact list of some of the biggest lenders and servicers in the nation.
Loss Mitigation Department Phone Numbers
|America’s Servicing Company||877.222.7875|
|Bank of America||800.846.2222|
|Caliber Home Loans||1-800-401-6587|
|Chase Bank||800.848.9136, 877.838.1882, 866.316.9218|
|EMC Mortgage Corporation||877.362.6631, 800.723.3004, 866.325.4314, 800.707.9998|
|Fifth Third Bank||800.375.1745|
|First Tennessee Bank||800.354.4538|
|Flagstar Bank||800.945.7700, 800.968.7700|
|Green Tree Servicing||877.816.9125|
|HSBC Mortgage Services||800.365.6730, 888.648.3124|
|Huntington National Bank||800.323.9865, 800.323.4695|
|Midland Mortgage Company||800.552.3000, 800.654.4566|
|Ocwen Financial||888.554.6599, 800.746.2936, 877.596.8580|
|Regions Mortgage||800.986.2462, 800.748.9498, 866.298.1113|
|Sun Trust Mortgage||800.443.1032, 800-634-7928|
|U.S. Bank||800.365.7900, 800.337.1193, 877.490.7827, 888.780.3997|
|Wells Fargo||800.868.0043, 866-903-1053|
FAQs on Loss Mitigation
It is also important to get an idea of the concept behind loss mitigation and how the process flows. Here are some of the most frequently asked questions.
What is loss mitigation?
Loss mitigation can help reduce the loss of lenders or investors when borrowers face hardships and are unable to make payments. To mitigate or control a certain loss amount is what the term means and this is specific to the investors who own your mortgage. As a result, a servicer might only be willing to work with a borrower if it can suit the interests of the investors.
Can loss mitigation stop foreclosure?
The very purpose of loss mitigation is to prevent foreclosure as it might prove too costly for the investors to foreclose on a property. It is the investors who determine if you may be offered loss mitigation assistance, and if yes then what type of the same will be made available to you. To determine if such an alternative is better than a foreclosure, a mathematical formula known as Net Present Value (NPV) is used. Whether your application for assistance will be accepted or denied depends on the NPV outcome.
My loss mitigation request is denied. What should I do now?
You must note that you have certain rights as a borrower. For example, you have the right to know who own you mortgage and how you can contact them. Mortgages are usually repackaged and sold in the secondary market.
The lender who originates a loan might sell the same to an investor who can then hire a servicer to manage the borrower’s payments. If you have applied for a loan modification at your lender, you have the right to certain information that was used in NPV calculation. You can then check to ensure that information is accurate.
What are loss mitigation options?
A loss mitigation option is aimed at either relieving the homeowner of the debt or creating a mortgage resolution that is financially sustainable to the homeowner. Investors benefit by reducing the losses they would incur through the long and tedious process of a foreclosure. Most options allow you to stay in your home while helping the investors reduce the loss due to a foreclosure.
People who are delinquent on their home loans can apply for assistance. They can either have their payments modified or sell their homes through a loss mitigation process. Among the various options include the following – loan modification, forbearance, partial claim, repayment plan, mortgage refinance, short sale, and deed in lieu of foreclosure.
How does loss mitigation work?
It sounds a better idea to begin by seeking a professional help from a HUD-approved housing counseling agency. This will help you understand the entire loss mitigation process. To apply, you need to write a hardship letter, describing in detail the change in financial circumstances that is preventing you from paying your mortgage.
A hardship may be caused due to unemployment, temporary or permanent disability, uninsured medical expenses for a family member, divorce, death, or any other circumstances beyond your control that significantly reduce your income or increase expenses. You also need to provide evidence in support of your hardship, such as a divorce decree or the checks you wrote to pay hospital bills.
Based on the outcome of NPV, you may be offered a loan modification program on a trial basis for a few months. You are required to make payments in time during the trial modification period (usually 3-4 months). Your servicer may then complete the paperwork to make the change permanent.
Does loss mitigation affect your credit?
You must note that your loan may still be considered delinquent during the loan modification trial period. This is because you are making payments that are less than your regular payments. This can have an impact on your credit if your servicer continues to report your payments to the credit bureaus. However, once the loan terms are modified and the modified payments are made permanent, you will be reported as current (assuming that you are making the payments on time).