What is Loss Mitigation?

[Jennifer Griner]

Loss mitigation comes about when a homeowner is in danger of losing his property to foreclosure. When this happens, the bank or financial institute with whom the homeowner has the loan will sometimes bring in loss mitigation in order to modify the loan in such a way that both parties can continue working together and avoid foreclosure. Lending institutions are typically more willing to engage in loss mitigation the sooner the homeowner lets them know he is in danger of being unable to pay the mortgage.

What are the functions and types of Loss Mitigation?

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