Q:

What are some good loss mitigation options?

A:

Quick Answer

Some good loss mitigation options for properties include a deed-in-lieu of foreclosure, loan modification, preforeclosure sale or an assumption of an FHA-insured mortgage, according to the U.S. Department of Housing and Urban Development. Mortgagees seeking loss mitigation may also request an extension of time from their lenders.

Continue Reading

Full Answer

A deed-in-lieu of foreclosure is an option in which a borrower deeds his property in exchange for a release of all obligations under the mortgage, explains the U.S. Department of Housing and Urban Development. A loan modification permanently changes the terms of an existing mortgage into a new mortgage with a payment the borrower can afford. A preforeclosure sale, also known as a short sale, allows borrowers to sell their homes and use the proceeds to satisfy the existing mortgages, although the selling price is less than the amount owed.

Learn more about Credit & Lending
Sources:

Related Questions

Explore