With the Making Home Affordable program not yet bringing in better results, the financial institutions themselves are now adapting to the mortgage modification needs of the market. Special mortgage servicers now address delinquent bank loans that are crossing the 90-day mark.
What they are
Special mortgage servicers evolved from those that took care of the daily administration of mortgages. That means they maintained escrow accounts, collected payments, informed borrowers of late payments, and started foreclosure actions. However, when the economic crisis hit, they had to adapt to address loans that were in very bad shape. That’s where special mortgage services started.
In some cases, they are hired by your original loan servicer to handle accounts on a lottery basis. In others, you can request for assistance. You should contact your mortgage servicer for more details.
What they can do
These special servicers have extended powers when it comes to home loan modifications. Here are some of their solutions to your mortgage modification needs.
Cut loan balances in half. Some loans can be cut in half (at most) by consolidating all the debts or loans incurred, such as mortgages and home equity loans. Once this is done, it will be easier to calculate how much of the balance can be removed.
Just be sure to remain available to them. That means answering the phone, and telling them all the information they need to move quickly on reducing your payments.
They can help you with a short sale. Sometimes, the best way to deal with a crushing mortgage is to simply sell at a loss, and walk away. The agreement in such cases is that the servicer and the homeowner will come up with a sale price for the house, and then the owner will get a percentage of the sales. While this may not save your house, it will allow you to walk away with as little damage as possible.
Sign up at the box on the right for more information on mortgage modification offers.
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