Loss Mitigation | Specialist Help for Mortgage Loan Modification

Loss mitigation refers to a number of ways to save mortgages in default. There are many forms of loan loss mitigation, each one suited to a different kind of homeowner. A loss mitigation specialist can help you get your loan modified, sell your home at a discount, or work out another solution with your lender to keep them from foreclosing.

Perhaps the most common form of loss mitigation is loan modification, wherein a lender agrees to change the terms of the loan to better suit your paying capacity. It’s usually the first loan loss mitigation offer given by banks, as it lets the borrower keep the home and minimizes potential losses for the lender. You can work with a loss mitigation specialist to help you negotiate with the bank and choose terms that best suit your situation.

Borrowers who do not qualify for loan modification usually resort to short sales as a loss mitigation alternative. In a short sale, you sell your home for less than what you owe on it, and your bank agrees to accept that amount as payment for your loan. This form of loan loss mitigation won’t let you keep your home, but it offers a less drastic alternative to foreclosure. Again, a loss mitigation specialist can help you, but you can also work with a short sale agent to help you complete the loss mitigation process sooner.

Other forms of loan loss mitigation are available to those who cannot benefit from either loan modification or short sale. Ask a loss mitigation specialist what your options are and how each one can help you. Some of the most popular include:

Forbearance – a loss mitigation arrangement wherein your payments are reduced or suspended for a given time. This holds off foreclosure while you get back on track or work out other loan loss mitigation solutions.

Deed-in-lieu of foreclosure – involves simply turning your deed over to the lender in exchange for forgiving the loan. A loss mitigation specialist would usually recommend this for people who can no longer afford the loan and for whom foreclosure is the only way out.