Loss Mitigation can Stop the Foreclosure Process

Loss Mitigation is the process of trying to STOP a home foreclosure before it occurs. The process can be lead by either the owner of the property, a representative of the lien holder or a third party that works strictly for the best interest of the home owner. The loss mitigation process is often better handled by a third party knowledgeable with the process due to their experience and their ability to deal with the lending institution without emotions attached to the situation.

Loss Mitigation was introduced as a collaborative effort between the federal government and the mortgage industry.

There are several options when it comes to loss mitigation BUT the main focus should be to keep the home owner in their home. every bank and/or lending institution has their own way of handling loss mitifation within their system. The first step is finding out their procedures and putthing them in place.

If it does not seem like a realistic outcome, every attempt should be made to help the home owner get the most for their home as they possibly can before a foreclosure sale takes place. This may include deed-in-lieu of foreclosure or a short sale payoff, if a qualified purchaser can be found.

By taking the time to know what your rights are in the foreclosure process, it is possible to use the Loss Mitigation process to get back on track with your mortgage. Lenders ultimately want to keep home owners in their home and it is up to the home owner to show that they will be able to catch up or maintain the mortgage payment in the future.