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Whether your circumstances involve negative home equity, late loan payments or mortgage default, there are options to revive your position in the real estate market. The following offers a closer look at some of the most common forms of loss mitigation negotiation, including short refinance, short sale debt negotiation, loan modification and cash for keys negotiation. Determine which option suits your needs and contact a mortgage expert who specializes in loss mitigation negotiation.

Short Sale Debt Negotiation

Short sale debt negotiation is the process by which the lender accepts a short payoff on a mortgage. Under short sale debt negotiation, the homeowner locates a buyer and petitions the lender with an offer on the property.

While the prospective buyer’s best offer on the home is typically lower than current market value, this form of loss mitigation negotiation is a much better alternative to foreclosure. Short sale debt negotiation can provide a way out for homeowners in danger of defaulting on their loans or for those with upside down mortgages.

Short Refinance

Short refinance loss mitigation bears similarities with short sale debt negotiation, in that the lender reduces the principal amount due on the mortgage. However, short refinancing allows borrowers to keep their homes and qualify for a new loan with better terms.

Short refinance loss mitigation is the ideal alternative for those ineligible for traditional refinancing because of negative home equity. Short refinance candidates are current with their mortgage payments, have decent credit profiles and can verify financial stability.

Loss Mitigation Negotiation — Loan Modification

Loan modification is among the favored foreclosure alternatives, in that loss mitigation negotiation results in adjustments to the terms of the existing mortgage. Loan modification may include a reduced mortgage principal, lowered interest rate, exoneration from past due payments and extension of the loan term.

Homeowners need not be in default on their mortgages in order to qualify for a loan modification. Often, those eligible have experienced loss of income, a drop in home value or have an ARM that is about to adjust.

Cash for Keys Negotiation

Cash for keys negotiation is a strategy lenders use to prevent costly damages to foreclosed homes. Given the detrimental nature of foreclosure proceedings, cash for keys negotiation encourages the homeowner to peacefully depart from the property in exchange for a cash offering.

Contact a mortgage professional who specializes in loss mitigation negotiation to evaluate your case and determine which option is best suited to your situation. With a qualified expert in your corner, you can protect your family and save your home.