Mortgage Loss MitigationMortgage Loss Mitigation is a term that commonly refers to the department at a bank that handles short sales. This department may also be referred to as the Foreclosure Resolution Department or other similar names. The purpose of a Loss Mitigation department is to prevent or decrease the loss the bank would suffer that comes as a result of a foreclosure. This department may also handle a workout plan or repayment plan and sometimes a deed in lieu of foreclosure. A Loss Mitigator is the employee that is handling the account for the bank. They are usually very experienced bill collectors that are now in charge of preventing big losses for the bank. They prevent losses by negotiating and approving a loss in the form of a real estate short sale or other solution. Some services refer to themselves as Loss Mitigation. What they are referring to is the act of preventing a foreclosure for a homeowner. These services negotiate short sales, repayment plans or deeds in lieu for homeowners. Homeowners are advised to be wary of such services and should do research prior to paying anyone to negotiate on their behalf. Typically any payment would come at the closing table from the foreclosing bank or from the buyer. Mortgage companies have a Loss Mitigation Department to handle real estate short sales and prevent further losses that could come from a delinquent loan and subsequent foreclosure. Learning how to short sale a mortgage is the most common way to prevent foreclosure in today's market. Get Our Free E-Course Training Guides and Tips
Return To Short Sale From Mortgage Loss Mitigation
|
