Definition of Loss Mitigation:
Loss Mitigation in Orange County:
Loss mitigation is the process by which a bank tries to minimize its loss in a mortgage the borrower isn't repaying according to its original terms. In real estate, this applies mostly to the bank working with its homeowners who have been unable to make their mortgage payments. In a nutshell, this means the bank isn't receiving the return on its investment (ROI) that it needs to make the loan profitable (they aren’t earning any interest because the borrowers are unable or are unwilling to continue with the payments). So, third-party loss mitigation negotiators work with the bank and the homeowner to find a solution or liquidate assets for the smallest possible loss of money to the investor or bank. If this can be accomplished it is done through a loan modification or loan refinance, likely through a hard money lender.