Loss Mitigation

Loss mitigation refers to a mortgage lender's efforts to reduce its' losses relating to a possible foreclosure. Mitigate means reduce. A number of mortgage lenders have named their pre- foreclosure departments "loss mitigation" because they are trying to reduce the mortgage lender's potential loss by helping people keep their mortgage loans.

As part of the loss mitigation process, lenders may delay mortgage payments, modify mortgages, accept a short sale, accept a deed in lieu of foreclosure, etc. The idea is to help borrowers who are having a difficult time paying their monthly mortgage payments so that the lender will not have to foreclose.

Contrary to what many people think, your mortgage lender does not want your home. Your lender is in the loan business, not the real estate business. Your lender does want to be paid. But, if your lender is not going to be paid, it wants to reduce its losses and get as much as possible of the amount it is owed. Hoping to reduce or prevent a loss is why most mortgage lenders will work with borrowers to help them over difficult times.

Different from lenders trying to reduce their loss, the terms "Loss Mitigation Specialists" and "Loss Mitigation Consultant" are generally used by people or companies that claim that they will stop, avoid, or prevent foreclosure. Some may be able to help you by using one of the options described in this website. Others may simply be scams or less than honest. Be careful about who you deal with, and make sure that you understand exactly what they claim that they will do and exactly what they will charge.

This website, Stop Foreclosure - Five Options You Need To Know, is to help you understand the options (loss mitigation and others) available to you to stop or avoid foreclosure in your situation. You need to beware that not every option is available in every situation. An option that works in one situation may not work in different situation. See stop foreclosure options to help you understand the options available to you to stop or avoid foreclosure in your situation.