WHAT IS LOSS MITIGATION: Loss Mitigation is a process to avoid foreclosure. In this process, the lender tries to help a borrower who has been unable to make timely mortgage payments and is in danger of defaulting on his or her mortgage. As a gen-eral rule, lenders only be-gin foreclosure when all else fails. Lenders work with Loss Mitigation Counselors and Housing Counseling Agencies for ways to assist homeown-ers having financial diffi-culties; however, their ability to assist the home-owner declines with each missed payment.. The easiest way to cure a delinquency is to pay the lender everything that is owed. This includes missed payments, any late fees associated with the payment and any other fees which the lender charges as a result of the delinquency. When this is not possible, Loss Mitigation provides alterna-tive ways to help homeowners avoid foreclosure.

Mortgage

Trouble We Can Help,

Loss Mitigation Guide

THE BAD NEWS:

• Michigan home foreclosure rates are among the highest in the nation

• Experts have suggested foreclosure filings in Michigan could double in 2008

• The year to date foreclosure fillings for Michigan have reached over 117,122

• More than 1.2 million American homes

are now in foreclosure • A significant portion of the increase in

foreclosure filings will likely come from the approximately 212,000 subprime mortgages in Michigan

THE GOOD NEWS: • We have helped many distressed

homeowners prevent foreclosure. During your FREE Home Ownership Consulta-tion, we will discuss your options to Stop Foreclosure and answer any questions you may have.

• We are a community based affordable housing agency dedicated to preserving home-ownership.

HOUSING HOTLINE

1- 866-931-4202

Contact Us Today For A FREE, Confidential Home Ownership Consultation or visit

us on the web at www.mainstreetcapital.org

Call 1-866-931-4202 For a FREE Foreclosure Prevention Consul-tation: Our certified loss mitigation counselors will ana-lyze your situation and set up a plan to help you avoid foreclosure. You’ll get advice and a free foreclosure consultation. Our success rate in help-ing homeowners avoid foreclosure gives us per-suasive leverage with mortgage companies. We know the laws pertaining to foreclosures and re-possessions. In the vast majority of cases, we are able to stop foreclosures quickly.

Its never too late for help, so don't delay —act today!

Call 1-866-931-4202 for foreclosure prevention counseling:

Foreclosure: A Growing Concern Foreclosure is a real issue for our country and more importantly, the state of Michigan. We are living in the worst housing slump since the great depres-sion. Not only does foreclosure have a disastrous impact on families, it affects entire communities.

Is Bankruptcy Right For Me:

Thanks to Main Street

Capital I was able to buy my own home, they pro-

vided the down payment money, and a low interest

mortgage, they got me a deal on a house that I

could not have possibly done on my own. Thank

you very much.

How To Prevent Foreclosure Through Loss Mitigation

1. Repayment Plan—Develop a written agreement

between the borrower and lender outlining how to

handle missed payments. Generally, these agree-

ments require higher payments than the regular

mortgage amount for a short period of time until the

loan is brought current.

2. Forbearance—The lender will allow borrowers a

specified period of time (usually three to six months)

to make either lower payments or no payments at all.

Unless the loan is extended, later payments will have

to be higher than the original monthly mortgage

payments until the loan is current.

3. Loan modification--A loan modification involves

changing one or more of the terms of a mortgage in

order to help borrowers bring a defaulted loan cur-

rent. Modifications can be considered to reduce the

interest rate of the mortgage, change the mortgage

product (for example from an adjustable rate to a

fixed rate), or extend the term of the mortgage.

4. Assumption of the loan--An assumption is a

method of transferring a house to a new buyer who agrees to take responsibility for (assumes) the existing

mortgage. Not all mortgages are assumable, so this

option must first be discussed with the servicer.

6. Short Sale—A short sale is the sale of a property

in which the lender agrees to accept the proceeds of

the sale, even though it may be less than the amount

owed on the mortgage. This is the best option for

home owners unable to refinance.

7. Deed-in-lieu of foreclosure--A deed-in-lieu of

foreclosure takes place when borrowers voluntarily

gives the deed to the property to the lender.

One child in every classroom in America

is at-risk of losing his or her home be-cause their parents are unable to pay

their mortgage.

If you are considering filing bankruptcy to save your home, it should be a last resort option. You have that right, but it may not be the best solu-tion: Typically, a servicer can’t offer relief while the property is under protection of the bankruptcy court or once a bankruptcy is discharged without reaf-firmation. Also, lenders can offer relief options that the bankruptcy court can’t. If the bankruptcy is dis-charged, although they are no longer personally responsible for the debt, the servicer can and will foreclose if the borrowers don’t make payments.

Call MainStreet Capital Housing Today at 1-866-931-4202.