There are unexpected situations that we can’t control. If your finances are affected or if you are experiencing financial difficulties, the Loss Mitigation program may be a solution for you. Whether your situation is temporary or permanent, we offer assistance alternatives for which you may be eligible depending on the type of your mortgage loan and current financial situation at the time you apply for help.
Below you will find general information about how the program works and how you can apply.
If you are experiencing difficulties in paying your mortgage loan, we will guide you on the steps to take and how the Loss Mitigation Program can help.
Learn how the program works
The Loss Mitigation program’s main objective is to help if you can’t meet your mortgage payments or think you won’t be able to meet them in the near future. Your application will be evaluated for all the alternatives that your type of loan offers. Completing certain stages of the Loss Mitigation process could help you avoid foreclosure.
Learn more about the Mortgage Assistance alternatives that may apply to your mortgage loan according to loan type and your personal financial situation when applying for assistance.
Options that may be available depending on your type of loan:
These options would be evaluated individually and will depend on your financial situation when applying for help.
If you need time to recover, this type of agreement is designed to address a short-term situation. During the forbearance, you will have a reduction in, or a suspension of, your monthly payment. This agreement will cause these payments to accumulate, so at the end of the agreement you must reinstate them or contact us to evaluate other options that will allow you to cover these outstanding monthly payments.
This temporary agreement allows you to cover the months in arrears by adding an additional amount to your regular mortgage payment. A payment plan will not alter the original terms of your mortgage, such as the loan amount, interest rate, amortization and maturity.
If you qualify for reducing your mortgage payment or covering accumulated amounts, this agreement will allow you to restructure the original terms of your loan. This could include extending the term, capitalizing arrears, changing the interest rate and in some cases, it could defer or delay the payment of a portion of the loan until a later date.
Depending on the type of loan, a trial period may be required. The trial period is a temporary agreement that is usually offered for three months prior to the modification, and in which consecutive payments will be required and that will be similar to what your modified payment might be.
The goal is to confirm that you can handle this new payment. Once you meet the trial period’s consecutive payments, and subject to compliance in resolving any title issue pending applicable to registration processes, we will proceed to modify your mortgage. After signing the modification, your mortgage would be up to date.
The short sale alternative could be available in cases where the value of the property is lower than the amount owed to the bank for your mortgage loan and you don’t have the money to cover the deficiency. It allows you to cancel the mortgage loan for a balance that is less than the total owed. This means that a certain amount could be canceled or eliminated from the loan balance, so you can sell the property at the current market price.
The terms of the approval will be set based on the applicable guidelines according to the type of loan.
Deed in lieu of foreclosure is another disposition alternative that could be available to you. If you qualify, you could surrender the property to the bank and cancel the mortgage loan, provided the title is clean and free of liens and the property meets the requirements for it. This option will allow you to cancel the loan and avoid a foreclosure process. It is important that you keep the property protected and in good condition while you own it.
Request an interview
Call us at 787-775-1100787-775-1100 Start by contacting one of our representatives to schedule an interview. In it, you must provide your financial information and they will advise you on which documents are necessary for the evaluation.
A guide to the program’s process
Interview with a representative
You will be interviewed by a Loss Mitigation representative to learn more about your financial situation.
Request for documents
You will receive a letter itemizing which documents you must provide to the Loss Mitigation unit to complete your application.
Application confirmation
Once you submit the documents, you will receive a letter confirming that your application is complete and ready for evaluation. At that moment the bank will begin to evaluate your application.
Evaluation
We will evaluate the financial information you submitted, along with additional documents. The options for which you are eligible will be determined based on the type of loan you have.
Decision / Determination
We will call you to notify you of the decision and you will receive a letter confirming it.
Closing
Finally, if you accept any of the options, we will proceed to formally document the transaction.
Important: Each client has a particular situation and every type of loan has a defined guide or program, so options may vary.
Financial documentation will depend on your source of income, the type of loan and the requirements set forth by the loan’s investor and/or guarantor. During the interview as well as in our letter, we will notify you of which specific documents apply to your case.
Below is a list some of the most commonly required documents. This is not a full list and it may vary depending on the particular situation and the requirements specific to the type of loan (investor, assignee or collateral).
Salaried, Social Security, pension and rental income
Pay stubs that cover a period of 30 days
Two bank statements that show the amount of income deposited
Recent income tax returns
W2
Benefit award letter
Self-employment / Professional services
Recent and signed business or individual income tax returns
Recent financial statement (profit / loss), signed and dated
Two bank statements that show the amount of income deposited
Evidence of expenses
For FHA loans only.
Bills:
Electric power
Water
Telephone
Internet
Mobile phone
Cable or satellite service
Evidence of hardship
You must provide documents that show the adverse and involuntary situation that prevents you from making your monthly mortgage payment.
Income reduction
Letter from your employer
Pay stubs before and after the reduction
Income tax returns covering the affected period
Increase in expenses / Extraordinary expenses
Bank statements that show these expenses
Bills
Copies of checks used to pay for these expenses
Illness
Written statement from the debtor
Evidence of disability benefit
Medical certification
Medical bills
Divorce
Divorce sentence
Division of common property
Death certificate
Obituaries
Work-related relocation or transfer
Signed copy of the offer
Letter from your employer
PCS permanent station change order - military personnel
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