Can someone please explain what loss mitigation is?

Asked by Anna, Detroit, MI Mon Mar 30, 2009

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Scott Godzyk, Agent, Manchester, NH
Mon Mar 30, 2009
BEST ANSWER
Anna basically it is the department at the bank/mortgage company that attempts to get the most money back for the bank they can, limiting the loss. They assess what the best option is for the bank, whether it be working it out with the current owner through forebearance or re-writing the mortgage, letting the owner go through a short sale or foreclsoure. All banks have these departments, and yes some are nicer than other to work with. You need to mix niceness with aptience to get assistance from them.
Web Reference:  http://www.ScottSellsNH.com
1 vote
smith3gary, Agent, White Lake, MI
Mon Mar 30, 2009
Anna,

http://en.wikipedia.org/wiki/Loss_mitigation

Since everyone wants to contact this department for a "deal" their numbers are rarely published.
Web Reference:  http://mi-living.com
0 votes
Hayward Litt…, Agent, Troy, MI
Mon Mar 30, 2009
Hi Anna,

I guess the simplest way to explain loss mitigation, is when the bank evaluates options other than foreclosure to avoid losing money. There are different options that can be explored.

Everyone's situation is a little different, if you have a specific question, feel free to contact a HUD approved counselor.

Be wary of any loss mitigation companies that ask for fees upfront. That's my personal opinion.

Good luck.

Hayward
0 votes
Maureen Fran…, Agent, Birmingham, MI
Mon Mar 30, 2009
The department in the bank that attempts to reduce or eliminate the loss that the bank takes on a non-performing asset, like a bad loan. If someone is not paying their mortgage, loss mitigation attempts to collect as much as it can and figure out the best way to mitigate the bank's potential loss.
Web Reference:  http://miOaklandCounty.com
0 votes
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