Loss Mitigation Services
Strategy
Quantum takes non-performing loans, and based on the information gathered, will propose either a customer based resolution (reinstatement, repayment plan or modification) or a collateral based resolution (payoff, short sale, deed in lieu), and work with the customer, investor and insurer (where applicable) to gather the information necessary to consummate and close the deal.  Forbearance plans are often used as a pre-cursor to a long term resolution like a modification, short sale or deed in lieu.  Our goal is to create an opportunity that allows borrowers to retain their homes while at the same time recasting a new mortgage which takes into account the borrower’s current financial situation.

Customer Based Solutions

A customer based resolution is a workout option that allows the borrower to remain in the property and bring the account current.  Customer based resolutions are only utilized when there is an intent to keep the property, and the borrower has the financial ability to do so via one of the below listed resolution strategies.

Forbearance
Quantum will work with the borrower to temporarily suspend or reduce mortgage payments for a specified period of time.  This option will not bring the account current, but is instead used in conjunction with other strategies to achieve final resolution.   This resolution strategy is most often used to prove willingness and ability to pay in order to pre qualify the borrower for a modification.  This strategy is also used to cash flow a loan while the property is being listed for sale in order to facilitate a collateral based resolution.

Repayment Plans
A repayment plan is an arrangement that gives the borrower a fixed amount of time to bring the delinquent mortgage payments current by paying the normal monthly payment plus an additional amount.  If all scheduled payments are made as agreed, the loan will be current with no outstanding fees or costs at the end of the plan term.

Mortgage Modification
A loan modification is a permanent written agreement between Quantum and the borrower that changes one or more of the original terms of the loan, in the following order: term extension, capitalization of debt to adjust the UPB, rate reduction, or, as a last resort, forgiveness of debt.

Collateral Based Resolutions

A collateral based resolution is a workout option by which the borrower works with Quantum to dispose of the property outside of the foreclosure arena.  Collateral based resolutions are beneficial to the borrower in that they reflect more positively on credit reports, they help avoid any subsequent deficiency balances that the borrower might otherwise owe on the debt, and they eliminate additional financial commitments such as trustee interest that is often times owed when bankruptcy is filed.  Collateral based strategies are utilized when the borrower does not intend to keep the property, or they are financially incapable of doing so within the constructs of one of the customer based resolution strategies.

Pre-foreclosure Sale
Allows a borrower in default to sell the property and to satisfy all or a portion of the mortgage debt and obtain a release of lien, even if the proceeds are less than the amount needed to pay the loan in full.  This option is subject to approval by the investor, and the mortgage insurance company, if applicable.  Quantum reviews state specific deficiency guidelines and attempts to negotiate unsecured side notes in conjunction with this option.

Deed-In-Lieu of Foreclosure
This option is considered when all other attempts to assist are unsuccessful.  Quantum requires evidence that the property has been listed at fair market value for at least 90 days without any acceptable offers.  The property must be free and clear of any outstanding liens or encumbrances, and must be left in clean condition.