Loss Mitigation

The full range of solutions that may avert either the loss of a debtor’s property to foreclosure, increased costs to the lender or both. Loss mitigation commonly consists of loan modifications and refinances, forbearance agreements, short sales and deed-in-lieu of foreclosure agreements. The terms of a loss mitigation solution varies in each case according to the particular needs and goals of the parties.

A process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan