Loss Mitigation Specialist

You're facing mortgage foreclosure. You look on the internet for help to stop or avoid foreclosure. You see something saying "loss mitigation specialist" and wonder, what is that?

Contrary to what some people think, mortgage lenders do not want your home. They make their money from mortgage loans and not from selling repossessed homes. In fact, most home lenders have created loss mitigation departments to help people behind on their mortgage payments. "Loss mitigation" means to reduce the amount of a potential loss. For example, if there is some way that your home lender can help you over a rough period of time and then have you make your monthly payments, they have prevented or reduced a potential loss.

Even though loss mitigation actually refers to a home lender's actions to reduce a potential loss, loss mitigation has become known as the process of a home lender working with a borrower to save the borrower's mortgage and reduce the lender's potential loss.

With so many foreclosures these days and record number of people looking for help to stop or avoid foreclosure, some individuals and companies have assumed the title "loss mitigation specialist". What these people and companies are saying is that they specialize in working for you to save your mortgage.

However, what they will do for you varies greatly. Some will negotiate for you with your lender. Some will set up loans to avoid or stop foreclosure. Others will arrange a short sale if possible.

It is vitally important that you understand just what they propose to do and exactly how much it will cost you. Do not give them any information, agree to pay, or pay them without first knowing what they are going to do. Some of these loss mitigation specialists are crooks. Others are legitimate. You need to know which is which.

Another consideration is whether or not they propose to do something that you can easily do yourself. For instant, are they going to charge you and simply talk with your home lender? You can talk with your home lender just as easily and not pay anyone. Are they going to charge you to talk with several lenders about a new loan to pay off your existing loan? You can talk with a number of home lenders yourself without charge. Remember, the money you pay "loss mitigation specialists" could be used to save your mortgage.

Finally, if anyone says that they can stop or avoid foreclosure without paying your home lender, do not believe them. Home loans are like car loans in that if you do not pay, the lender will get your home.

This article is general information. If you have any questions of any nature about avoiding foreclosure, talk with a lawyer licensed in your state.

Stop! Don't blindly chase any option to stop foreclosure. See stop foreclosure options to learn what options you have in your situation. Remember, what works in one person's situation, may or may not work in your situation to stop, avoid, and prevent foreclosure. For more general information, see Stop Foreclosure - Five Options You Need To Know.

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