Loss mitigation is used to describe a third party helping a homeowner, a division within a bank that mitigates the loss of the bank, or a firm that handles the process of negotiation between a homeowner and the homeowner's lender. Loss mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure. These new terms are typically obtained through loan modification, short sale negotiation, short refinance negotiation, deed in lieu of foreclosure, cash-for-keys negotiation, a partial claim loan, repayment plan, forbearance, or other loan work-out. All of the options serve the same purpose, to stabilize the risk of loss the lender (investor) is in danger of realizing.
Other articles related to "loss mitigation":
... Loss mitigation has been a tool used by lenders for decades, but experienced tremendous growth since late 2006 ... Prior to late 2006, early 2007 Loss Mitigation was a tiny department within most lending institutions ... In fact, the run up prior to the near collapse of the entire financial system shows Loss Mitigation was almost nonexistent ...
Famous quotes containing the words mitigation and/or loss:
“Law is a thing which is insensible, and inexorable, more beneficial and more profitious to the weak than to the strong; it admits of no mitigation nor pardon, once you have overstepped its limits.”
—Titus Livius (Livy)
“Children, dear and loving children, can alone console a woman for the loss of her beauty.”
—Honoré De Balzac (17991850)