When people are faced with the prospect of losing their home, fear is the first emotion to strike, and that’s completely normal. Another common response is to ignore and avoid the situation in hopes that the problem will simply go away. In truth, the worst thing you can do is nothing.

Kerry Steigerwalt’s Pacific Law Center has successfully helped many San Diegans modify their loans and save their homes. Below are a few stories of people who have been faced with unaffordable and overwhelming mortgages. We’d like to invite you to share your story below. Please remember that you’re far from alone in this situation.

Loss mitigation is a third party that tries to create a scenario where both the lender and the borrower will gain.  Loss mitigation can provide a borrower with three different options to help you stay out of foreclosure:

First is a short refinance.  This is a refinance of a home loan where the amount of the loan is usually less than the total of the outstanding debt.

Second is a short sale. A house in a short sale is one where the price of the home is less than what the homeowner owes on the loan.  The lender has to approve the amount and is part of the sales process.  Third is a loan modification.  This is where the home loan terms are changed to yield a more affordable monthly mortgage payment for the homeowner.

A homeowner can move forward on any one of these loss mitigation options without the assistance of a professional in the industry.  This is not the best strategy however.  If a homeowner works with a professional who has dealt with a loss mitigation department, these is a more of a chance of seeing better results.  This is especially true with doing a loan modification.  If the homeowner’s ultimate goal is to stay in their house, the third option is the best option.

In a loan modification there are different factors that play a role in determining what and how the terms of the loan will be adjusted.  Hiring an attorney with experience in negotiating loan terms and dealing with loss mitigation departments will result in the best outcome.

If a homeowner is delinquent on their home loan, there is no benefit in delaying the next step.  In fact, it is important to contact a loan modification attorney today to see what steps should be started for a loan modification.  The FDIC just announced a proposal that give lenders more incentive to modify loans, so this is a perfect time to evaluate how a loan modification scenario will help a homeowner keep their house an avoid a foreclosure.