What does Loss Mitigation mean?
Loss mitigation is an alternative to foreclosure, so the logic behind the procedure is to keep a borrower in his home. The loss mitigation program was created by mortgage lenders and the federal government to decrease the amount of foreclosures in the United States. The procedure takes place when a third party acts as a negotiator between the borrower and the lender of a particular property. The third party negotiator is usually a representative, or an employee of the mitigation department, for the lender. During the negotiation process, the third party will try to determine the best way to get the borrower back in the black with the mortgage lender.
