Stop Foreclosure

"Nearly 1 in 10 U.S. homeowners faced foreclosure or fell behind in their mortgage payments in the first three months of the year, according to a report released Thursday, a figure that offers a look into the toll caused by the collapse of the housing market.
The first quarter marked the worst quarter for American homeowners in nearly a quarter-century, according to a widely watched report put out by the Mortgage Bankers Association, a trade group.
Both the rate of new foreclosures and late payments surged to the highest levels since 1979. The delinquency rate includes Americans who are more than a month past due on their home loans.
A breakdown of the statistics showed problems at nearly every level of the mortgage industry.
Of the 45 million home loans included in the survey, 6.35 percent were at least one payment past due, up from 5.82 percent for the fourth quarter. All figures are adjusted for seasonal factors." Per Chicago Tribune June 6 2008

The current economic shift has hit the subprime borrower the hardest. It could be referred to as a perfect storm. For most subprime borrowers, loan criteria was stretched when the initial loan product was initiated. Often income was either grossed up or not substantiated. Property values were sometimes inflated or since the inception of the loan have deflatuated. Credit scores have shifted from a required 500 mid score for 100% financing to the current 620 mid score for 95% financing with 100% programs joining the ranks of the dinosaur products. There's no more 100% financing programs.

So here's the problem......
Many subprime products were originated as 2 or 3 year fixed notes, set to adjust at the end of the term. Often they were products containing seller financed sub-ordinate liens set to balloon after a five year term. These same borrowers now are trapped in products with no way to refinance them.

Here's the cure.....
Very few individuals are aware of the little know secret of Loss Mitigation. I have personal experience that it does work. Loss Mitigation is a technique that can be used to lower you interest rate, lower your payment, even reduce you principle balance in cases where property values have erroded drastically.

For More info: On Loss Mitigation