Equity Plus Recovery Mortgage:
Ten Steps to a Financial Do-Over
- Joe Homeowner’s $719,960 ARM loan due April 2036 is in default and facing foreclosure. The loan is owned by Bank of XYZ and serviced by Bank of AAA.
- Bank of XYZ wants to sell the troubled asset, putting Joe’s loan out to bid as part of a $75 million pool of similar loans.
- Institutional Home Equity Partners buys the loan pool, including Joe’s loan, which is bought for $292,484. Joe’s house is valued by Home Equity Partners at $584,967.
- Home Equity Partners contacts Joe via its Loss Mitigation Department and collects his financial information in accordance with established policies and procedures.
- Joe meets with a Home Equity Partners/ApprovalGuard credit counselor/licensed loan officer who explains the Equity Plus Recovery Mortgage, providing Joe with all necessary information.
- Joe accepts the Equity Plus Recovery Mortgage solution, signs and returns the loan modification documents with a Notary and the Home Equity counselor who come to his home, completing the application process with a home inspection.
- Institutional Home Equity Partners contracts with Bank of AAA to service Joe’s new loan
- Joe’s Equity Plus Recovery Mortgage loan modification is recorded.
- An ApprovalGuard credit coach calls Joe, initiating his credit service.
- Home Equity Partners sends Joe a post-closing welcome letter and customer satisfaction survey.
