Loss mitigation is a term used to identify alternatives to foreclosure. The mortgage lending industry has recognized how many homeowners are behind on their mortgages or will soon be. It is possible that we may be able to negotiate one of the following options to resolve your past due balance with your lender and avoid foreclosure:

• Loan modification: This option alters the terms of the existing mortgage. Sometimes fundamental items including the interest rate, term of the loan, or the principal amount are renegotiated and a new contract is entered into.

• Deed in lieu of foreclosure: Sometimes referred to as “cash for keys,” this program essentially allows the borrower to surrender his or her ownership of the property for the agreement on the part of the lender to not pursue any legal actions for deficiencies owed.

• Short sale/short refinance: A short refinance is another example of altering the original terms of the mortgage contract whereby the parties agree that the lender will pay off the existing mortgage and replace it with a new loan along with a reduced balance. Similarly, a short sale is where the lender accepts the best negotiated price for the property for less than the amount owed on the note and generally forgives the deficiency.