Loss Mitigation is intended to lessen the high cost of foreclosure to a lender.
Recently, and increasingly, the issue has become more politicized and lenders see loss mitigation as good business as well as good for their image. Lenders are seeing the ceiling on the number of bank-owned (foreclosed) properties they can put on the market. Loss mitigation is now a game of not foreclosing if at all possible, in order to stem the potentially much greater losses in the long-term.
Loss Mitigation includes numerous opportunities for troubled homeowners – what’s important to remember is that there is no “one size fits all” answer, and Loss mitigation really refers not to the homeowners’ loss – it refers to the lenders’ loss. The array of choices leads to a considerable amount of confusion for the average homeowner who is already struggling to balance home/work issues on top of the critical decisions h/she needs to make just to keep their home in today’s troubled housing market.
To receive a copy of LenderBackDoor's fact sheet with definitions of each opportunity followed by the opinions from two Real Estate veterans on each and why they see Loan Modification as the best option for both owners and lenders in this current market, please contact us.