May, 2008 had the largest monthly unemployment jump, .5% in 20 years. To Prevent Foreclosure, the homeowners must have an income. Without an income, there is nothing to use for negotiating with their lender. Many homeowners find new employment, but only after falling behind on their mortgage. That is where you come in - helping us reach out to those homeowners and let them know that there is still hope to stop Foreclosure on their homes so that they will not have to move.

To learn how you can help by becoming a Certified Loss Mitigation Consultant, or Joint Venture Manager, visit PreventForeclosure.net.

Jim Hutchinson
Independent Certified Loss Mitigation Consultant
Freedom Foreclosure Prevention Services

Planned layoffs by U.S. companies rose 68 percent between March and April, signaling continued labor market deterioration. The recent layoffs approach the total cuts announced in September, 2006.

Unemployment benefits claims increased by 35,000 the last week of April. The increase was more than the 18,000 that private economists predicted. The labor market continues to be strained by a weak economy. An estimated loss of 70,000 jobs is expected for the fourth consecutive month.

The increasing jobless rates, escalating fuel and food costs are all but strangling the mortgage industry, pushing the Foreclosure rates to unbelievable heights. Without sufficient income, more home owners are being forced out of their homes and into apartments, living with family or friends, or in some cases, homeless shelters.

Even with those alarming numbers, there are still many home owners we can help Prevent Foreclosure on their homes using loss mitigation. You can help us reach them by visiting PreventForeclosure.net.

Jim Hutchinson

Voluntary industry efforts to address the mortgage Foreclosure crisis are not keeping up with the rising number of homeowners in trouble. Lenders and loan servicers have increased their loss mitigation efforts in recent months, turning more to loan modifications than putting homeowners on repayment plans that do not address long-term issues.

Even with increased efforts, a report by the State Foreclosure Prevention Working Group in New York, who services multiple states, said the efforts are “falling far short of the need” to Prevent “millions of unnecessary foreclosures“. While more borrowers are getting loss-mitigation help, rising level of new loans going bad overshadows those efforts.

“The collective efforts of servicers and government officials to date have not translated into meaningful improvement in Foreclosure prevention outcomes,” the report said.

“I am disappointed that the findings in this report show little progress has been made in addressing a crisis that is having devastating consequences for families and communities across New York State,” said Richard H. Neiman, state banking superintendent.

State officials said loan servicers are unable to manage the workload properly, since they are overwhelmed by the problem.

Help Prevent Foreclosure

“The servicing system was never designed to manage and re-underwrite millions of loans,” Mark Pearce, deputy commissioner of banks in North Carolina, said on a conference call with reporters. “As a result, at every step along the process, they’re running into problems.”

Thirteen of the 20 largest subprime mortgage servicers in the USA, representing 57 percent of the subprime loans serviced, participated in the report by providing data to the states. The others refused to cooperate.

Robert Shiller, Yale University economist and pioneer of Standard & Poor’s/Case-Shiller home price index, said Tuesday that there is a good chance housing prices will fall further than the 30 percent drop in the historic depression of the 1930s. Home prices nationwide already have dropped 15 percent since their peak in 2006.

Mr. Shiller endorsed a proposed legislation that would allow the Federal Housing Administration to back as much as $300 billion in mortgages for struggling homeowners. Servicers would have to agree to take a loss on the existing loans, while borrowers would have to show they could afford to make new payments on their refinanced mortgages.

Jim Hutchinson
Foreclosure Loss Mitigation Consultants Wanted Immediately
Learn how you can help. Visit Prevent Foreclosure Network

Reference Source: Buffalo News

On the other hand, sub-prime lenders offer loans to similar high-risk groups, but with better terms. Hard money lenders are referred to as such because they lend primarily on the hard asset values rather than the credit of the borrower. These lenders are sometimes referred to as collateral-based lenders as well.

Hard money lenders have been instrumental in bringing a class of properties to market that prime lenders avoid. Thanks to their financing, millions of square feet of renovated problem properties have been put back into productive use and economic viability. Hard money lenders typically require 5-10 percentage points higher interest rates than private money or conventional lenders. Plus, hard money lenders will typically charge you “points” on a loan which is prepaid interest thereby making this a rather expensive funding alternative.

If you purchase a property using a hard money lender and fall behind on payments, negotiating a workout is rarely possible. Since the loan was made using the home value as collateral instead of credit, hard money lenders are not as flexible with their terms as conventional lenders are.

That means to Prevent Foreclosure on a property you purchased through a hard money lender, you would have to try getting a sub-prime loan to pay off the hard money lender, or allow a short sale to be done on the property, if the lender allows it.

Hard money lenders are not very forgiving in terms of working out hardships. You either pay, or lose the home. They will then sell the property to someone else. This is why the interest rates are so high when using a hard money lender.

Jim Hutchinson

Loss Mitigation is not a well known term to the general public and your lender is not always telling you about it. Loss Mitigation is the process by which the mortgage company will re-negotiate the terms of your loan. Your lender does not want to take your home. The phone calls and letters you are getting are from the collections department. Do not be surprised by their high pressure “you better pay now or else!” attitude. Loss Mitigation is that rare company that actually does what it says it can do and extends itself to care about their clients.

The Loss Mitigation process can be led by either an employee or representative of the lean holder or a third party that works strictly for the best interests of the home owner. Loss Mitigation is made more attractive by the fact that Foreclosure costs are often substantial. Historically, the Foreclosure process has usually taken from a few months up to a year and a half, depending on state law and whether the borrower files for bankruptcy. Loss Mitigation is essential to asset protection because it provides the borrower with information necessary to make good decisions. Learning the programs or “tools” available as an alternative to Foreclosure is the key to preserving home ownership.

Mortgage servicers today are in need of a solution to automate the complex decisions required to create the optimal scenario for each individual borrower. Decision-making and process automation that enable the quick computation of borrower financial information, loan information, investor and client conditions, and integrate assessments for net present value of the asset, borrower financial score, risk and regulatory policies.

Mortgage companies have various programs with various qualifications, but Loss Mitigation is one of the first options that homeowners should attempt in trying to save their homes. While it is widely recommended for homeowners to work with the lender on their own before involving any third party company to negotiate on their behalf, many homeowners do not know how to get passed the collections department, or how to negotiate arrangements that are in their best interest.

An offer made by the lender for the repayment of the arrearages will most often be what the lender thinks the homeowner can afford, not what the homeowner can stay on schedule with. When you are facing Foreclosure, by all means call your lender first to try working out an arrangement. If you call early enough in the process, you can usually avoid the Foreclosure process altogether.

Beyond that, you need a third party who is experienced in Loss Mitigation and working with the lenders. The company I recommend is Freedom Foreclosure Prevention Services (FFPS). Their track record is best spoken by their satisfied clients.

To recap, Prevent Foreclosure by first contacting your lender early. The second step is to contact a Certified Loss Mitigation Consultant with FFPS.

Jim Hutchinson
Certified Loss Mitigation Consultant

Lenders are calling home owners that are about to adjust and telling them they can POSSIBLY reduce their rate. These are telemarketers from the lenders who just make the calls, gather info and pass it along. It does not mean that the home owner has been offered any type of modification.

If the loan was obtained within one year ago, it is not usually possible to do a modification. A lender wants to see close to two years or more (depending on lender) with some good history. If a home owner had a bad paying record in this time frame, the lender will not be as willing to go towards a modification.

If a home owner has a thirty year fixed loan at 7.75% and tells you they want their rate lowered because they cannot afford it, a lender is not going to adjust an interest rate just because the homeowner over-extended themselves with other debt or signing for a loan they knew they could not afford.

The mortgage payment must be the hardship in regards to a rate reduction. If the home owner has $1,500 in monthly credit card payments, this would not be a hardship that the lender would accept towards lowering their payment. The home mortgage must be the issue.

If the home owner signed a mortgage at a very high interest rate knowing they cannot afford the payment, this is not an issue for the lender. They are not going to automatically lower the home owner’s rate. They must have good payment history with lender first. It does not matter what their mortgage broker or their Realtor told them. This is not a reason for a rate reduction.

If the home owner has a fixed rate loan with a high interest rate, but has had the loan two years or more with GOOD paying history, their lender may work on getting the interest rate and payments lowered.
Jim Hutchinson
Certified Loss Mitigation Consultant
Freedom Foreclosure Prevention Services

In October, 2007, the number of homes in Foreclosure was reported to have surpassed the 1 million mark. With more Adjustable Rate Mortgages (ARMs) adjusting this year, the number of homes being foreclosed on is spiraling out of control.

Millions of homeowners need Foreclosure loss mitigation consultants to help Prevent their foreclosures. Foreclosure consultants provide a much needed service to homeowners, banks, and mortgage companies by acting as the middle men & women between the homeowners in pre-Foreclosure and the mortgage companies.

Get your FREE information today about becoming a Certified Foreclosure Loss Mitigation Consultant and starting your own home-based consulting business. Becoming a Foreclosure Loss Mitigation Consultant does not require you to have good credit, know how to buy foreclosures, sell property, or have prior experience in real estate.

All you need is a desire to learn how to help people save their biggest asset from Foreclosure. Freedom Foreclosure Prevention Services (FFPS) will teach you how to locate home owners facing Foreclosure, interview them properly determine if they are qualified for loss mitigation services, and complete the required paperwork. You will also learn why bankruptcy can be the worst possible option to avoid Foreclosure.

There are two steps to get your information.
1) The first is to complete a short request form.

2) From there you will be given a choice of a live business overview webinar, or a recording of that webinar.

Attend either one to see how you get involved with the Foreclosure industry and start learning how to Prevent Foreclosure. Do it now while you are still here.

Jim Hutchinson
Certified Loss Mitigation Consultant
Freedom Foreclosure Prevention Services

He told that he was given $2,000 by his lender in exchange for him to move out by a certain date. The man also stated that he was given an eviction notice. That date just happened to be the day after he called me.

Once a lender has given the home owner Cash For Keys, the Foreclosure has already been completed and there is nothing we can do about it. The lender was paying him to get out of the home so they could take possession. He said they had already postponed the move-out date several times.

I told him that if he could postpone it at least 30 days I could see how we can help. I was wrong. When I spoke with our Loss Mitigation Director, I was told that the Foreclosure was already done, leaving nothing for us to do.

This is why contacting us immediately when a home owner receives a Notice of Default is so important. Had he contacted us prior to the Foreclosure sale, we may have been able to help him. Now that home is no longer his and he had to move out.

To learn how you can help reach more home owners and Prevent their Foreclosure, visit PreventForeclosure.net.

Jim Hutchinson
Certified Loss Mitigation Consultant
Freedom Foreclosure Prevention Services

Do you say, “I am a used car salesman”, or “a construction worker”, or “I own a plumbing business”, Or “I am real estate agent”, or “I am housekeeper”?

If you say any of those, STOP!

From now on tell everybody, “I am a Loss Mitigation Consultant. I help stop bank foreclosures on homes across the USA.” Do it for 90 days and be astonished at the conversation it will start.

What difference does it makes what you do for a living anyway to these folks? I do not think they will get you a promotion OR they are really interested in your vocation. Most likely they are interested in something like you do. But stopping foreclosures is a topic that brings back really great responses. Such as:”Hey, my neighbor has been talking about knowing people in Foreclosure. You two should talk. Let me give you his phone number.”

“My administrative assistant has a relative living in Georgia and her mortgage just jumped over $400 per month. She is about to leave the house and move back in with her parents. Maybe you can help her? Can I get your phone number for her?”

“I have always been interested in doing the pre-Foreclosure business, but have not had time until now. Maybe we can get together later and talk about that?”

How does that sound? Amazingly people actually go to a Foreclosure auction and when asked what they do, describe their day job.

Another reason you should do this is: You should always see yourself as the person you want to become. If you do not think of yourself as a Loss Mitigation Consultant and do not introduce yourself as one, then nobody else will either.

From now, for the next 90 days, give yourself a NEW title: “I am a Loss Mitigation Consultant. I help stop bank foreclosures on homes across the USA.”

Change the conversation from the traffic conditions, weather and general gloom and doom.

Try it for 90 days. You will be amazed at the contacts and relationships that you will attract toward yourself.

See yourself as a Loss Mitigation Consultant, both inward and outward. Pretty soon you will be one of us, known by what you do, not for who your employer is.

Learn more about our Loss Mitigation Consultant program here.

Jim Hutchinson is an Independent Certified Loss Mitigation Consultant with Freedom Foreclosure Prevention Services.

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Copyright © 2007 Website Managers, LLC. You may reprint this article providing that this copyright notice and resource links all remain intact.

There are several companies out there helping mortgage and real estate professionals as well as stay at home moms learn the ropes of the loss mitigation/foreclosure prevention industry. Though there are several out there, our research has led us back to one company that seems the most attractive to those looking to get started and have a legitimate Foreclosure prevention business.

Freedom Foreclosure Prevention Services, founded in 2003 and based in Mesa Arizona, not only provides in-house loss mitigation services to thousands of homeowners but also provides an opportunity for individuals to help homeowners as Certified Loss Mitigation Consultants. Their company provides exemplary training in the loss mitigation/foreclosure prevention industry but also opens the door for many other opportunities in the Foreclosure industry. They have perfected and time tested their marketing tools, training and strategies giving consultants an arsenal of tools to help them become and stay extremely successful.

One area in the loss mitigation business opportunity field that causes concern is the liability that most novices may not be aware of. Loss Mitigation is a service that should be provided by experienced Loss Mitigation Specialists only. Should a home be lost during the process of loss mitigation, homeowners have every right to pursue legal action if they feel and can prove the company or individual providing the service was negligible. Now many companies that train on loss mitigation will actually have their “agents”, “reps”, consultants or independent contractors collecting fees, setting up escrow and trust accounts and having clients sign contracts under the individual’s direct name rather than the company actually providing the service. If a homeowner were to pursue legal action, the first person on the list would be the person they are signing contracts with and giving fees to.

Freedom Foreclosure Prevention Services (FFPS) is responsible for all client cases and works closes with the clients throughout the process handling all loss mitigation in-house. In addition, a client will sign a contract directly with FFPS offering a 100% guarantee rather than the individual consultant. Many may not see the value of this but inexperienced loss mitigators are losing homes to Foreclosure every day for lack of experience, knowledge and wherewithal. Freedom Foreclosure Prevention Services has built an impeccable reputation by providing superior client support and excellent loss mitigation services.

If you have recently researched becoming involved in the loss mitigation/foreclosure prevention industry you should be wary to whom you trust not only your reputation but the many families that will rely on you to save their home. Find a company that will stand by their experience and absorb all liability if any. Join forces with a company that has a time tested reputation and conducts business with the highest of standards.

To learn more about how you can become a Certified Loss Mitigation Consultant with Freedom Foreclosure Prevention Services, visit PreventForeclosure.net

Jim Hutchinson is an Independent Certified Loss Mitigation Consultant with Freedom Foreclosure Prevention Services.

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Copyright © 2007 Website Managers, LLC. You may reprint this article providing that this copyright notice and resource links all remain intact.