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| A loan modification seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. Loan modifications include adjusting the interest rate, extending the loan period, or adding the delinquent portion and fees back onto the principal of the loan to be repaid over time. Why are lender(s) willing to work with us and homeowners on a Pre-Workout Program? The foreclosure process is not only a financial ordeal for the homeowner but it is costly and time-consuming for lenders as well. In fact, lenders are losing hundreds of millions of dollars annually on repossessed / foreclosed properties. Each step in the process -- foreclosure, eviction, and reselling the property after repossession -- requires time, resources and further expense for the lenders. Also, because lenders are not in business to own or maintain properties, they sell them as quickly as possible at prices invariably well under market value. When all is said and done, both the homeowner and the lender have undergone a lose-lose scenario. Lenders are not unsympathetic, they understand homeowners can fall victim to financial hardship beyond their control, but because foreclosure is typically viewed as adversarial -- the homeowner verses the lender -- this worst case scenario is often seen by the lender as their only recourse. However, the worst case scenario does not have to be the only one. Just like any company,lenders are in business to maximize gains and minimize their losses. Therefore, when presented with scenarios that reduces their losses in an already bad situation and that allows them to deal cooperatively with a homeowner in trouble, lenders are very often willing to work with us as an intermediary on a Pre-Foreclosure Workout Program. |
 PRESTIGE MORTGAGE SERVICES |
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