Tag: Loan Modification

What is a deed-in-lieu of foreclosure ?

A deed-in-lieu of foreclosure means that, in order to be released from your mortgage, you must transfer ownership of your home to your lender. If you choose this option, a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor can help you plan your next steps.

What is a Loan Modification or Loss Mitigation

Mortgage modifications or Loss Mitigation is when changes in the terms of a mortgage loan designed to make it more affordable to the borrower. There is Hope when it comes to Loan Modifications. Generally, modifications are available only to borrowers in default, or in imminent danger of default from impending rate increases that will make the mortgage payment not affordable to them. The purpose is to cure or avoid the default, thereby avoiding foreclosure.