Homecomings Financial Loan Modification

Homecomings Financial, LLC is a leading financial services company based in Minneapolis, MN. Part of GMAC LLC, one of the country’s leading lenders, it has originated over 800,000 mortgages nationwide. In recent years, it has also started offering mortgage assistance to sub-prime borrowers who were affected by the economic slowdown.

The most popular option for defaulting borrowers is loan modification. Homecomings Financial loan modification stops the foreclosure process while the borrower works out better terms with the bank. Mortgage modification is usually granted to borrowers who are in financial need due to a temporary situation (such as job loss or medical bills). A Homecomings Financial mortgage modification typically involves adding the delinquent amount to the balance and re-amortizing the loan with a more manageable rate. Working with a loan modification attorney can improve one’s chances of getting approved, and may provide legal leverage to get better deals.

For those who don’t qualify for a loan modification, the bank also offers two alternatives: a short sale or a deed in lieu of foreclosure. In a short sale, the home is sold for less than the amount owed, and the proceeds are paid to the bank and considered a full payment. A deed in lieu, on the other hand, lets the borrower simply transfer the title to the bank’s name. While neither option can keep the borrower in his home, they are less damaging to credit than foreclosure.