Loss Mitigation
To Prevent Foreclosure

The term loss mitigation in real estate refers to preventing foreclosure by negotiating debt forgiveness for a homeowner.

A mortgage company typically has a department dedicated to preventing losses suffered by mortgage foreclosure. If you are attempting to negotiate a short sale or forgiveness of debt, you must contact this department.

Some companies that negotiate short payoffs of mortgage loans to prevent foreclosure call themselves loss mitigators.

Be wary of any company that wants you to pay them up front to negotiate for you. Especially if it to negotiate a workout plan. A workout can be negotiated by a homeowner for free. If it is a short sale, they typically get paid from the mortgage company and should not charge you.

There are reputable companies that will negotiate a mortgage short for real estate agents and investors. It is important to research these companies and get references since they will have very important financial information.

The word mitigation refers to the alleviation of debt and is almost exclusively used by the foreclosing mortgage company. They use the term in referring to minimizing their losses.

Short sale foreclosure investing is the hottest way to prevent foreclosure for someone who can’t sell in a traditional manner due to little or no equity. Contact your mortgage company’s loss home mitigation department to start the process. Be wary of a company that offers to negotiate for you for a fee.

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