10 Things You Must Do When Contacting Loss Mitigation Department When Stopping A Foreclosure.

10 Things You Must Do When Contacting Loss Mitigation Department When Stopping A Foreclosure.
When trying to stop your foreclosure with a mortgage
company, dealing with a lost mitigation department can be
frustrating to say the least. These ten steps will help
smooth out the process of stopping your foreclosure.

1. Contact your mortgage company. You don't' just contact
the normal phone number showing on your statements that
come with payment coupons. You can start with that number
but tell them you are having financial problems and need to
work out the problem. The odds are high your mortgage
company is recording the call and just notified them of the
problem, making a record that you took proactive steps
toward resolution.

2. Ask for Loss Mitigation when talking to your Mortgage
Company. They might try to deflect you from the Loss
Mitigation and apply a great deal of pressure (they have
training in doing this), to bring your loan current, just
be persistent, and keep repeating you are requesting the
number for the Loss Mitigation Department.

3. Keep detailed records of all transactions, even
collection calls. This is important if you have to go to
court against the mortgage company. This means every phone
call, every telefax, every email, every traceable mail
receipt you sent, every piece of paper correspondence they
sent.

4. Once you've obtained the magic Loss Mitigation phone
number, phone them and ask what steps you need to follow
and any forms or application you need to fill out to get a
loan modification or approval for a Short Sale (selling the
property for an amount that is less than you owe the
mortgage company). Getting the forms or application is
important because the process generally cannot even start
until they receive them.

5. Choose your course of action. Do you want a temporary
reduction to get over a short term money problem? Or do
you need a permanent solution like a Short Sale (see number
4 above defining Short Sale)?

6. Fill out all forms required plus whatever is relevant
for your case.

7. Keep originals of all your paperwork. You can almost
count on your mortgage company losing the paperwork you
send them. In fact they will not only lose it once, it's
very probable they will lose your documents, or parts of
total document package, multiple times. Do not allow this
to frustrate you into giving up on the process. Much of
this is going to be a test of persistence and patience.
Don't take it personally. In the current market the Loss
Mitigation staff is handling unprecedented numbers of
requests.

8. Put your name, loan number, and contact information on
headers areas (or margins) of every single piece of paper
you submit. Again, Loss Mitigation are all but buried
under avalanches of paper during this mortgage crisis, and
the chances of your document making it back without
originals increases dramatically if all this information is
on every piece of paper.

9. Use a method of shipment that provides you tracking and
a receipt, preferably a receipt that requires an actual
signature at the destination, when you send your documents
to your mortgage company. This step most likely will do
nothing to speed up the process, but it will be vital in
protecting you if you are in litigation situation with the
mortgage company.

10. Wait for the call. If the Loss Mitigation Department
tells you to contact them for an update once a week, make
sure you put on your calendar to make that call each week.
Expect progress to be slow, they have huge backlog of paper
and not enough people to wade through it.

In conclusion, the biggest bit of advice I can impart is
don't get impatient with Loss Mitigation staff. Their
department is overloaded and understaffed. Do what they ask
and be courteous; otherwise your paperwork just might drop
to the bottom of their every increasing piles of paperwork,
after you already waited 60 days to be assigned someone to
talk to you. Patience with the slowness of the process and
have to resubmit documents repeatedly will give you the
biggest advantage over other applicants in your same
situation. It is easier to be patient if you know what to
expect.

----------------------------------------------------
MJ Jensen has studied Real Estate from the Homeowners
perspective for over 20 years. Most recently due to the
nature of the Mortgage crisis, he has turned his focus to
techniques to keep homeowners out of Foreclosure. You can
visit his site at
http://www.stopbankforeclosurestips.com/free_report

Myths About Your Credit Score

Myths About Your Credit Score
There are plenty of credit score myths about fico score
ratings that are just floating around and most of them are
just outdated information. Even lenders can give you the
wrong advice, which can get a little confusing. But the
truth of the matter is that bad information can cost you
money no matter, where you get it.

Your Fico score ratings are used for most mortgage lending,
car loans etc. Which means, you will need to know what
will hurt or help your credit score. So to make it clear,
here are some of the most common myths about your credit
score.

* You can lower your credit score, by checking your credit
report.

You can check your own credit report and credit score, as
this counts as a soft inquiry and does not go against your
score. But, if anyone else like a lender or credit card
company is checking your credit report, this is considered
a hard inquiry and will generally knock off about 5 credit
score points, which is drastic as every point is important.

A typical credit score rating system treats multiple
inquiries in a 14-day period as just one inquiry. The
system ignores all inquiries made within 30 days prior to
the day the credit score is computed. So if you want to
minimize the damage from credit inquiries, try to shop for
a loan within that time frame.

* If you close your old accounts, it will improve your
credit report score

There are times when even lenders will tell you to close
your old and inactive accounts as a way for improving your
credit report score. In most cases, closing old accounts
will actually have the opposite effect with the current
credit score rating system.

If you choose to cancel old credit card accounts it can
actually lower your credit score because it makes your
credit history appear shorter. If you want to reduce your
levels of available credit, it's better to reduce or close
new accounts instead. Applying for new credit is more
likely to lower your score as well.

* You need to check more than just FICO score rating

If you ever hear this from anyone, consider it a red flag.
All of the three major credit reporting bureaus offer FICO
credit score ratings using the formula developed by Fair,
Isaac. Even though each one gives the scores a different
name you only need a fico score rating from the three major
credit reporting bureaus.

At Equifax, the FICO score rating is called the Beacon
credit score. At TransUnion, it's called Empirica. At
Experian, it's known as the Experian/Fair, Isaac Risk Model.

The reason each of the three major credit reporting bureaus
will have three different scores is because they don't all
share the same data. So when checking your credit report,
just make sure it comes from the three major credit
reporting bureaus: Experian, Trans Union and Equifax.

Examine your credit reports from all three major credit
reporting bureaus before you apply for a big loan like a
mortgage. Fix any errors in all three reports before you
shop for a loan because it takes time to correct your
credit report.

* Getting some Credit counseling will hurt your credit score

Current FICO credit score rating systems in place will
ignore any reference to credit counseling that may be in
your file. The researchers at Fair, Isaac, the company that
created the FICO credit scoring rating system, found that
people getting credit counseling didn't default on their
debts any more often than anyone else would.

On the contrary, any late payments you've had with
creditors will hurt your credit score. Credit counseling
can hurt your ability to get a loan because you probably
have had trouble paying creditors.

As some lenders will back away if you are in credit
counseling. Others may see it differently, but usually will
charge you higher interest rates than if you had a perfect
credit score.

Best way to improve your credit report score is by paying
your bills on time and paying off credit card debt. Check
your credit report regularly for any errors and make sure
you don't fall for these common credit score myths as they
block you enjoy a little financial freedom.

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Mr. Keishon Martin who also writes for
http://www.Newmoneycredit.com which is where you can get
the best self credit repair program on the internet. also
check out http://www.bodyguidepro.com