As the industry’s leading specialist in loan modification, WMG is able to provide fast and reliable mediation services between borrowers and servicers/lenders. Our goal is to help both sides find a solution – a loan that is affordable for the homeowner and minimizes the losses of the servicer with a process that is objective and transparent.
WMG Strategies
Think of WMG as a generator of alternative loan products, providing more options that make loans workable. The chart shows the options available, beginning with the “traditional” option of refinancing the home. When that isn’t a viable option, we move to the other options according to the home value, borrower situation, and lender obligations.
Option 1: Refinance – The most common solution to a loan that isn’t working for the borrower. The current loan is refinanced into a new loan with better terms…however this option has become increasingly hard for brokers with borrowers unable to qualify with today’s loan programs.
Option 2: Loan Modification – When a refinance isn’t possible, the current loan is modified by the current lender so that the loan doesn’t default. This is a good option when keeping the loan is in the lender’s benefit and if the homeowner’s situation is workable.
Option 3: Short Sale – As a final alternative, if the current loan can’t be modified or a new loan made possible, the lender and homeowner can agree to sell the home short of the mortgaged value. For example, if the home was purchased and mortgaged at $500,000 but the current market value is only $400,000, then the lender can “forgive” the $100,000 difference to allow a sale and avoid foreclosure.
