Saint Clair Homes

Loss Mitigation refers to the mortgage company’s programs/department designated to assist people with bringing their mortgages up to a current status once there is a delinquency.

If you find that you need to call your mortgage company because you are delinquent, ask for the Loss Mitigation Department or sometimes known as the Loan Counseling Department.

Loss Mitigation Options:

Repayment Plan: the delinquent amount is added to your regular payment, and spread out over a 3 -12 month period (sometimes longer).

Loan Modification: delinquent amount is added to your principal balance. Sometimes the term of your loan is extended to 30 years and/or the interest rate adjusted.

Partial Claim: for FHA loans and loans with PMI insurance. Mortgage insurer gives you a loan for the delinquent amount – a non-interest loan to be paid back at the time the home is sold or after the first mortgage is satisfied.