Avoid Foreclosure Of Your North Shore Home By Mastering the Loss Mitigation Packet
Often times when you are about to begin the process of a short sale someone will ask whether you have received your loss mitigation packet. So what is this packet and what does it look like? While every bank has a different packet, we wanted to answer this question briefly so you can know what to look for and what to watch out for when you receive it in the mail.
A packet that is correctly filled out, including the smallest of details and supporting documents, will give you the best chance of getting your short sale approved
Loss Mitigation packets are information provided by the bank or banks that you have a loan with. If you have two loans on your home you will need to submit loss mitigation packets to each bank. Each of them is different but they have detailed lists of information that they require in order to process and hopefully approve your application.
What is Contained in Loss Mitigation Packets?
These detailed packets that once filled out by you the home owner can often exceed 25 or 30 pages with the kind of information that they contain. These packets can cover the smallest of details like the following:
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How did you qualify for your loan? (full documentation, stated income, etc)
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Who was your loan officer?
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Do you have a 2nd mortgage?
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Would you consider a deed in lieu?
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Would you carry a personal note?
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The state of your current finances (balances of 401k, savings, even paystubs)
These packets are intense and the smallest of errors can send your file to the back of the review pile. A packet that is correctly filled out, including the smallest of details and supporting documents, will give you the best chance of getting your short sale approved.
Does someone help me fill out the Loss Mitigation Forms?
For homeowners pursuing their own short sale or loan modification, sadly there isn’t any one to help. There certainly should be some agency to help homeowners in distress, but currently no such organization exists.
Should you decide you want help to pursue a loan modification or short sale, we are here as guides for our clients and help them fill out every detail of their loss mitigation packets. We understand that an incorrectly filled out packet can cause a homeowner to be denied and go to foreclosure. It is extremely important to get the packet filled out correctly the first time as an incorrect application can even be shredded by some banks and not accepted or at the very best delay the approval process.
When we are working with you we spend hours reviewing and guiding you through this packet to make sure your packet doesn’t end up in the shredder, it ends up as the highest priority of the bank so you get the opportunity to avoid foreclosure.
How do I send in the loss mitigation information?
Each bank has their own requirements as to how they like to receive the information from their clients. Some require a printed version of all materials while others allow fax or e-mail. We will determine what your bank or banks require so that you have the highest chance of success for approval.
To help you discover more tips on filling out your loss mitigation packet we invite you to take just 30 second to fill out the form below.