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Delinquency Prevention

Loss Mitigation

It's important for you to pay your mortgage as agreed. It is not necessary to stop making payments to receive assistance. If you are having difficulty making your payments or anticipate future difficulty making your payments, ServiSolutions has a dedicated Loss Mitigation team to assist you.  Carefully read the information below, and return all forms and documentation to the Loss Mitigation department as soon as possible. Time is of the essence to avoid further delinquency, so respond quickly to any requests for additional documentation.

Our Process

Loss Mitigation is the process where we work with struggling borrowers to try and find alternatives to foreclosure, reducing loss for the homeowner as well as the investor. This communication normally occurs between the 90th day of delinquency up to 38 days prior to a foreclosure sale date. However, a borrower who foresees an immediate documented hardship that will prevent payment of the next mortgage payment is welcome to apply for assistance. 

Loss Mitigation Options:

    • Forbearance: Allows for a period of reduced payments with specific terms, that is often associated with a default caused by unemployment. This program requires monthly financial updates as well as a review for a more permanent loss mitigation tool.  

    • Modification: Allows for a change of one or more of the original terms of your mortgage, including the unpaid principal balance, interest rate and/or maturity date. This program requires a financial analysis and often a trial to confirm your ability to manage the new payment. 

    • Partial Claim, Principal Forbearance, or Mortgage Recovery Advance: Allows for all or a portion of your delinquency to be converted to an additional property lien. This program results in an interest free balloon payment that requires you to sign a promissory note.

    • Pre-Foreclosure, Short, or Compromise Sale: Allows for 3-4 months to sell the property short of payoff. You will not be pursued for a deficiency judgment, however a contribution and tax consequences may apply. This program also requires a licensed real estate agent and that the property be maintained in ready to show condition.

    • Deed-in-Lieu or Mortgage Release: Allows for voluntary surrender of the property. You will not be pursued for a deficiency judgment, however a contribution and tax consequences may apply. This program requires that the property be vacated at the time the deed is executed. Your investor may require an attempt of the above option first.

      Please be advised a scheduled foreclosure cannot be canceled for a disposition option without receipt of an acceptable purchase contract per your investor's guidelines at least 19 days prior to sale.

      Though default will negatively affect your credit, even during the application and workout process, reported arrangements may be less damaging. The application process is normally 37-60 days, including 30 days to review a complete loss mitigation request. An alternative may take an additional 30-180 days to finalize. As with early intervention, investor's guidelines and financial circumstances determine the option available and its terms. If you are unsure of your investor, please call 866-339-2432. Any representative will be able to assist you.

    • If your account is due for less than 4 payments, is less than 12 months old, or if you have an FNMA loan and you are currently unemployed or your temporary hardship has been resolved, please see the Collections page to apply for a repayment plan or forbearance.

    • If your account is due for 4 payments or more, please complete:

      • A Loss Mitigation Request using the checklist to ensure a complete submission

    • If your FNMA loan is due for 4 payments or more and you would like to keep your home, please complete:

    • Intake: Once your request is received, intake personnel will determine if your application is complete within 7 days. If the application is deemed complete, a call and complete application notice will be provided. If the application is not complete, you will receive a phone call, written document request with a deadline, and follow up calls. The length of this 15-27 day process is entirely up to you. It is imperative that you provide timely responses and seek HUD counseling.  

    • Underwriting: Once your request is complete, your underwriter has 30 days to render a decision. Multiple calls to the office may delay this process as requests are reviewed in the order they are received. Once the evaluation is complete, a phone call, as well as an evaluation notice, will be provided to review financials and options.

    • Processing: Once you have accepted the loss mitigation offer, a workout processor will assist you with finalizing the option, calling, and sending documentation as needed. The timeframe varies depending on the program. It is imperative that you provide timely response. 

    Avoid delays in processing. For all requests for assistance, you are asked to provide a complete application with all documents requested and all pages, including blank ones by:

    • Fax to 334-271-3104

    • Mail to ServiSolutions, Attention: Loss Mitigation, P.O. Box 242967, Montgomery, AL  36124-2967 

    • Hardship explanation with supporting documentation as evidence the hardship made the mortgage payment unsustainable. Examples are:

      • Job Loss or Reduced Income

      • Marital Difficulties

      • Living expenses and debts surpassing income

        • Examples of support include paystubs and bank statements from around the time your account fell delinquent and/or a recorded divorce decree/quit claim

    • Paystubs or Unemployment Compensation Notice/Pay History

      • If paid weekly, please provide the last five paystubs.

      • If paid bi-weekly or bi-monthly, please provide the last three paystubs.

      • If paid monthly, please provide the last two paystubs.

    • Benefit Income (Including but not limited to SSI, Disability, Retirement, Pension, Survivor/Death Benefits, VA Benefits, Public Assistance, or Adoption Assistance)

      • Most recent award letter, exhibit, policy, or benefit statement reflecting the current monthly allotment with evidence of recent month’s receipt

    • Self Employment

      • The most recent two years business and personal tax returns with all schedules and forms, W-2s

      • Quarterly or year-to-date profit and loss statement (Investor and option may require compilation by a Certified Public Accountant.)

      • Supporting personal and business bank statements to verify the income on the Profit and Loss Statement

    • Rental or Boarder Income

      • The most recent two years personal tax returns with all schedules and forms 

      • Current lease agreement and evidence of receipt of the most recent three months payments

    • Notes Receivable or Trust Income

      • A copy of the note or agreement verifying the amount and frequency and tax returns and schedules, and most recent two months bank statements

    • Recorded Divorce Decree and Quit Claim, Recorded Separation Agreement, Court Ordered Maintenance Agreement

      • Any of these may be required to:

        • Verify monthly income or obligation

        • Pardon a mortgagor’s participation in the loss mitigation process (This does not apply to parties who signed the note obligation.)

    • Power of Attorney (POA)

      • A power of attorney (POA) is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. A power of attorney may be used when a customer is legally unable to make decisions, or may be unable to attend a meeting, or to sign loan documents. When a transaction is handled by someone other than the named customer, verification of POA is required.

        • There are several types of POAs that grant different permissions, so court documents may be requested to verify that the appropriate level of authority is provided for the transaction. 

        • In transactions involving an individual who is unable to make decisions for himself or herself, proof of this may be requested via court documents or a letter from a medical professional.

    • Executors and Administrators 

      • An executor or administrator is a person or institution designated by the terms of a will or appointed by a court of probate to manage the assets and liabilities of the estate of the deceased. A death certificate and documentation verifying designation or appointment of this position must be provided.

    • The terms of your existing mortgage will apply, including potential foreclosure, if all documents are not received by the due date in the missing information letter.

    • Do not include illegible documents, documents that have been altered with correction fluid or by other means, or originals as they will not be returned.

    • Verify that all borrowers (parties on the original note) have completed, signed, and dated all documents where required. 

    • Write N/A if something does not apply.

    • Submit all of the requested documentation at once with your loan number on each page. Failure to submit all documents will delay the process.

    • The financial documentation you provide should be current, within the last 30 days. Information is considered stale when it is 90 or more days at the time of underwriting.

  • For more information, visit Frequently Asked Questions or contact Loss Mitigation at 1-866-339-2432.