Loss Mitigation Services #2
What is A Loss Mitigation Plan?
Hi, I’m Nevada Loss Mitigation Specialist Damian Falcone.
This is part 2 of the loss mitigation services video series. In part 1 we answered the question “what is a loss mitigation plan. Today we will go through the opening Series of Questions in evaluating your situation and setting the foundation for your Loss mitigation services.
In developing a plan for Loss Mitigation services: Determining your goals and needs will Provide the foundation for your road to financial stability. And Conveniently, There is no better person to answer these Important questions than you.
If you have prioritized your debt as we have shown in our guide to loan modifications you understand that your mortgage is a 1st tier priority-- And a good place to start.
In evaluating your mortgage situation - You 1st need to understand what a mortgage is.
Your mortgage is a secured debt. This means if payments are not made the bank can take possession of the asset, in this case your home.
In the event your home when sold doesn’t generate enough money to cover the money you owe -- The bank can come after you for the additional money Called a deficiency. Most people avoid a deficiency through bankruptcy – but we are getting ahead of ourselves.
The goal of this section is to build a foundation for your Loss Mitigation plan by answering 2 simple sets of questions?
Our 1st set -- Is 7 financial questions everyone should answer relatively easily:
(1) How much do I owe on my home? We will be using a hypothetical example we will call Mr. X. Mr. X owes $300,000 graphic
(2) What is my home worth?
(Mr. X’s bought his home in 2006 and now his home is worth around $130,000 )
(3) What is my Mortgage Payment each month? ( Mr. X has a $300,000 mortgage @6.5% for a payment of $1,896 (we have estimated taxes and insurance at $300)) for a total payment of $2,196 per month
(4) How much would it cost to rent this house? (avg rent on $130k house in Mr. X’s neighborhood is $950/mo )
(5) Based on your finances and credit report is renting a house an option? We discuss credit reports in much more detail in our credit reporting series. But it is likely you are able to rent - But an additional security deposit may be required. (Mr. X is able to rent at 1 month down and 1 month security)
(6) How much money do I make each month? Mr. X makes $4,100/mo
(7) What are your total monthly expenses? Mr. X has reduced his expenses to $3,700/month
These 7 answers are going to be the foundation for Your Loss Mitigation services and in part 3 we will add another piece to the puzzle – so don’t lose your answers.
I’m Damian Falcone and this is “Get Modified”