What is Loss Mitigation?
Every bank has a Loss Mitigation Department which analyzes investments to ensure the bank to limit it losses. It is the job of a Loss Mitigator to determine when to sell investments which are creating a loss.
Individuals facing foreclosure must work directly with the Loss Mitigation Department. The first step of the process will help homeowners develop a plan to either save their home or give it back to the bank using a strategy known as Deed in Lieu of Foreclosure.
If the homeowner has the financial means to stay in their home, the loss mitigator may allow a loan modification or forbearance agreement. For individuals who are unable to workout a repayment plan, a Short Sale might be accepted.
A short sale involves getting the bank to accept a lesser amount than is due on the mortgage note. Currently, banks are only accepting one out of ten short sale requests. The reason for such a low acceptance rate is the fact that many people do not submit all of the required documentation. Since it is the job of the loss mitigator to keep losses to a minimum, the majority are accepting short sell offers of ninety-five cents on the dollar.
Experts suggest loss mitigation departments will be forced into accepting sixty-five to seventy cents on the dollar in the near future. Reason being is the sheer magnitude of foreclosure properties in America.
If you are facing foreclosure and want to save your credit history, Simon Volkov might be able to assist you. We work with individuals who are looking to make a fresh start and ready to break free from financial burden.
As a private investor, Simon Volkov can buy distressed real estate from homeowners. We work directly with your lender to help you obtain a stress free fresh start. To learn more about the programs we offer, visit our Forms page. Select the option for your situation and provide the requested information. You will be contacted within 48 hours to further discuss your needs.
Published on January 12, 2008 at 11:39 AM