A Promising New Solution for Homeowners Facing Foreclosure

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Helping troubled homeowners fight to save their homes, while minimizing losses for their lending institutions, Mortgage Recovery is quickly becoming a 'saving grace' during difficult economic times.

Many families are saving their homes from foreclosure with a Loan Modification

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For homeowners facing foreclosure due to adjustable rates, loss of income or any other form of hardship, there is a new option available. While many have only been aware of giving up their home in a short-sale, a deed-in-lieu of foreclosure, or public auction, troubled homeowners may now be eligible for a Loan Modification. This is a process in which the banks and lenders renegotiate for more reasonable terms including lowering and fixing the interest rate, reducing the principal balance and/or extending the term of the loan. This essentially brings the monthly payment down to an affordable amount, preventing the need for a foreclosure.

Loan Modifications may have been available to homeowners in the past, but most have had little success. The reason is that basic Net Present Value calculations are not being made to find the right solution which actually solves the problem; it is imperative that the homeowner's problem is solved in a manner that is mutually beneficial and profitable to the lending institution. Seth Hoerth of Mortgage Recovery (http://www.MortgageRecovery.com) comments "People are struggling. This is a fact. However, there is now a solution for all: When lending institutions modify current loans, they also benefit by minimizing and spreading losses over the term of the loan. It becomes an equitable business decision in opposition to Present-Value Losses incurred through foreclosure; this frees up capital and allows them to go about normal business by originating safer loans with new guidelines, all while helping good people stay in their homes."

Many larger banks are now facing the fact that the most logical solution is to prevent more losses by modifying the currently defaulted loans, but are facing serious set-backs by being understaffed. It is clear that banks must now start turning to companies like Mortgage Recovery to outsource their Loss Mitigation Services to keep a low overhead and maintain the most effective results.

While working directly with homeowners, Mortgage Recovery also offers outsourced Loss Mitigation Services directly to banks; this has proven to be an extremely effective solution to banks struggling to keep up with a high demand for Loan Modifications with a limited staff. "It's great to be involved in such a positive business. We are able to complete a thorough analysis of each situation to find the appropriate resolution and perform the professional services needed to aid both banks and homeowners in recovering from their financial difficulties." says Jon Tresko, Mortgage Recovery's Director of Marketing.

"As the loss of asset value nationwide causes 'Mark to Market' equity collapse, 'Net Present Value' calculations become implausibly corrupted and 'Internal Rate of Return' evaporates, this liquidity issue is a crisis. It is clear that Senior Management in companies heavily invested in 'Mortgage Backed Securities' must convert their non-performing assets to capital quickly." adds Seth Hoerth. Officials at HSBC North America, parent of HSBC Bank USA, HSBC Mortgage Corp. and HSBC Finance Corp., say their average loss on sale at foreclosure is 20 percent to 25 percent of the loan's value. With some of these larger banks like HSBC, Citibank and Chase looking at up to 500,000 problematic loans; the losses will reach the hundreds of billions if the proper steps are not taken immediately to hire the staff and/or outsource their Loss Mitigation services.

For additional information contact Jon Tresko or visit http://www.mortgagerecovery.com.

About Mortgage Recovery:
Mortgage Recovery is a Loss Mitigation and Loan Modification Company operated by The Law Offices of Michael Duff. The management staff consists of Banking and Real Estate Professionals with extensive experience and a great track record. With their offices located in Carlsbad, CA, Mortgage Recovery is the leader in this field, helping thousands of troubled homeowners stop foreclosure nationwide.

Jon Tresko, Director of Marketing
Mortgage Recovery


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