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Loss Mitigation Programs

Allow us to introduce our many Loss Mitigation Programs; we are the premier provider of such services, working tirelessly to find you a solution. Our proprietary database allows our Underwriters to expeditiously analyze the financial situation of each Customer and prepare the recommendations to be submitted to the Lender for approval. Unlike the competition, we handle each case proactively. Our goal is to provide the very best solution for our Customers instead of relying on the lenders to make a proposal, which is usually in their best interest rather than the borrower's. We prepare a formal workout proposal which includes a detailed solution with facts and financial figures to support our position. Because our Quality Control standards are so high, our Underwriters are among the best in the business. Our objective is to always deliver a solution that will stop the foreclosure process and save our customers home. We want you, our valued Customer, to be happy that you chose DREC Financial Services to assist you in your time of need. Here is a current list of our services.

Available Programs That Stop Foreclosure Fast!

Loan Modification

If you have incurred a long term financial hardship, our office can assist you by negotiating with and supplying the proper information to your lender on your behalf, in order to modify the existing term(s) of your mortgage. These modified terms could lower the interest rate and/or extend the term of the loan resulting in lower payments. Now, this can only be achieved if we work together; there are costs and fees associated with a modification that you will be responsible for. All property taxes must be current or you must be participating in an approved payment plan with your taxing authority in order to be eligible for a modification. Any additional liens or mortgagees must agree to be subordinate to the first mortgage. All requests are subject to your lender's approval.

Loss Mitigation

These programs were established by the Federal Government and the Mortgage Industry in order to stop home foreclosures. They help potential foreclosure victims in default on their mortgages to find foreclosure alternatives. Every homeowner's situation is unique and each lender has their own policies regarding the use of these programs; our extensive experience and solid working relationships with even the largest of mortgage lenders allows us to help you avoid the common pitfalls that many homeowners encounter while trying to work things out directly with their lender. After performing a thorough assessment of your personal finances and analyzing your lender's loss mitigation policies, our professional Mitigators will negotiate with your lender to get you the best possible solution to your home foreclosure problem. We can help you keep your house and credit history through a variety of loss mitigation options.

Short Payoff

If you have suffered a long term financial hardship and are unable to maintain your loan or if you need to sell the property to avoid a default loss on the property, it may be possible for the lender to accommodate you with a short payoff. A qualified buyer is required. If this is an option you wish to pursue, you must inform the Loss Mitigation Specialist assisting you immediately. There may be tax ramifications associated with any short payoff or foreclosure; therefore, we recommend you contact your tax advisor for details. Some states permit lenders to seek a deficiency judgment for the amount the payoff was discounted. See your state's foreclosure law for more information and we recommend that you check with an attorney for advice on your personal situation.

Deed-In-Lieu of Foreclosure

If you have incurred a long term financial hardship and your house has been on the market (at fair market value) for at least 90 days, you may be eligible for a deed-in lieu of foreclosure. To be considered for this option, you must complete a financial package and provide a copy of your recent active listing agreement. Also, the property must be free and clear of any additional claims or liens (other the mortgage) against the property. If you are approved for a deed-in-lieu, you will be giving up all rights to the property and the property will be conveyed to your investor. In exchange for the deed-in-lieu, the lender may waiver all deficiency judgment rights. You may be asked to participate in a Short Payoff program before a deed-in-lieu of foreclosure is accepted.

Repayment Plan

If you have incurred a short term financial hardship and your loan is two or more months past due, your Loss Mitigation Specialist will also consider submitting a request for a payment plan to your lender for approval. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible.

Special Forbearance

(FHA loans only) (Type I & II)
If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the Loss Mitigation Specialist will also consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. Typical approval can result in spreading the repayment over 12 to 18 months. Type II - can be utilized in an unemployment situation whereby the promise of future employment is present. We have successfully obtained such plans for our customers with VA loans resulting in up to 27-month repayment plans.

Partial Claim

Our Loss Mitigation Specialist may assist in requesting a partial claim if you qualify. You may be eligible if your loan is 120 to 365 days past due. A partial claim results in placing your past due payments into a subordinate mortgage (2nd mortgage) between you and the Secretary of Housing & Urban Development. The partial claim note will require you to start making payments when you pay off the first mortgage. There is no interest. The partial claim can be for no more than 12 months of past due payments. Contact one of our Foreclosure Specialists for more information about qualifying for this program.