Mortgage Relief is Not a Loan Modification

The term "Loan Modification"has taken on the characteristic of
being the catch-all phrase name branding for any changes in the
status of an existing mortgage like all facial tissue is called Kleenex.

In a foreclosure, a house will be taken to an Auction.

If the bank owned the mortgage or trust deed "note" they must
still "buy the debt" back at the auction.

A foreclosure means they will have to claim the property at the
auction but there are many potential expenses involved once
they claim the property at auction, mainly "holding" costs which
may include fix-up or clean up, lawn maintenance etc, as well
as insurance, winter heat and other various expenses.

The banks are in the business of lending money.
Lenders only really want payments today on the mortgage or
trust deed note so they have more cash today to loan out again.

This is why the bank entertains alternative solutions to claiming
a home in foreclosure. The property becomes a liability in their
"inventory" and is now something they must "dispose" of, often
at a further loss in a slow market like today with lots of other
properties sitting and waiting to be bought.

A slow real estate market with a backlog of properties creates
more problems as the lender will most likely be forced to sell
the property "at a discount" (below market listings) just to be one
of the first to get rid of what they have.

This brings us to "what are their choices" other than foreclosure.

The defaulted loan is in the "Loss Mitigation" department, which
means the bank/lender will try to "mitigate" their exposure to
further loses.

This is a department within the bank to serve the bank's need to
limit their loses. This is not a public service, this is business and
this department will look for a solution that seems to make sense.

This may be accepting a "short sale" offer (an offer to purchase the
property for less than what is owed on it) or some type of "workout"
with the original borrower, if they can prove capacity to make the
future payments going forward.

Another term used for restructuring the debt is a "Loan Modification."

Homeowners may seek a Loan Modification to continue ownership
interest in the property.

More than two thirds of loan modifications did not result in lower monthly payments. In fact, one in four resulted in increased monthly payments.

This is why Mortgage Relief is different.

Modifications often extend the term of the mortgage after folding in arearages and penalties, thus the principal balance is larger and for a longer term which means
more interest would be paid over the life of the loan, that is the trade off.

One month's payment added to the end of a loan will equal an additional
year's worth of interest but so few homeowners expect to be in the same house
30 years from now the homeowner is only concerned with not losing the home
to foreclosure. The lender is only concerned about getting payments back on
track and making the loan a "performing asset."

MORTGAGE RELIEF IS NOT THE SAME AS A LOAN MODIFICATION.

You do not need to be behind in your payments
to qualify for mortgage relief.

You do not need to be a Homeowner to qualify for
Mortgage Relief (you can also be an Investor/Landlord)

Check to see if your home qualifies for Mortgage Relief.