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Mitigation
Homeowners Assistance Association, (HAA) is a non-profit organization established for the purpose of bringing relief to troubled homeowners who are facing foreclosure by providing training that will increase the number of Foreclosure Prevention Specialists capable of assisting homeowners and providing the support infrastructure for the troubled homeowners and the Foreclosure Prevention Specialists. Due to the increase of foreclosures and projections that more homeowners will be in default, HAA will expand the association accordingly. HAA knows that life is unpredictable, and that circumstances may arise that prevent homeowners from making their mortgage payments. Homeowners may encounter temporary job loss due to a medical problem or a lay off. They may have marital problems or unforeseen repairs or even a death in the family. For whatever reason, a homeowner should not have to lose their home when they have always been good homeowners but a temporary hardship has knocked them off track of keeping the mortgage current. This is why Homeowners Assistance Association is such a helpful, critical organization. Homeowners Assistance Association’s Loss Mitigation Department is the best in the United States. Experience is the key to successful negotiations with lenders. Our veteran team knows what to expect and how to handle every situation. Our client agreements include a 100% rebate to the client if we do not affect a resolution. This is provided to the client in the Agreement of Agency, which outlines HAA’S responsibilities as well as the homeowners. Our skilled Mitigation team quickly qualifies the individual’s outstanding situation, completes a financial discovery to assess the individual situation necessary for resolution and brings recommendation to the senior compliance officers to accept or deny the case. We settle homeowner cases without going to court. Our Mitigation Team works directly with Manager level, Officer level and V.P. level individuals at prime and sub-prime lending institutions. These individuals, unlike the people that homeowners deal with, have a vested interest in keeping homeowners in their home, and turning a non-performing loan into a performing loan, not taking the home away by the foreclosure process. In each case, we identify the homeowners particular “Hardship,” confirm its resolution, confirm employment, perform a Financial Discovery (Income vs. Expenses) to determine the Mortgage Residual Factor (the number the lender needs to see to work things out) and put an entire Mitigation package together before approaching the Lender. Depending on the severity of the case, we negotiate one of three things: Loan Modification This is where the lender moves all of the Mortgage arrearage (past due payments) to the end of the note. If it is a fairly new mortgage the arrearage is spread out through the remaining years of the note. Usually, the homeowner pays the late fees, penalties and legal fees, but there are times we are able to get those negotiated lower as well. Forbearance-to-Modification A “Forbearance-to-Modification” is where the lender determines an amount (usually 25 to 50% of the arrearage) as a down payment and then sets a payment amount and number of months (usually 3-6) for the homeowner to prove himself again. If those payments are made on time, the remaining balance is forgiven and moved to the end of the note. Repayment Plan/Reinstatement In this arrangement, we negotiate with the lender the least possible amount to reinstate your loan and get the homeowner back on track. How much does it cost? Our fee schedule varies from $1000 to $2500 depending on the complexity of the case, type of loan, lender or servicer, and mortgage history of the client. How long does it take? Once we’ve established communication with the Lender, it usually takes 1-2 weeks. This whole process usually takes no more than three weeks. We can also accelerate or decelerate the process. By decelerating the process we give the client the ability to save up the necessary contribution to acquire the best possible monetary resolution of the case. |
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