Bank Loss Mitigators
Bank loss mitigators are specialists who have been trained to work as mediators between lending institutions and homeowners facing foreclosure. Oftentimes, bank loss mitigators are employed by banks and mortgage companies. When Borrower's become delinquent on their mortgage, the lender assigns a loss mitigator to handle the account. However, anyone who has been trained in loss mitigation can represent either the Borrower or Lender.
Bank loss mitigators must possess the ability to negotiate with both parties to reach a fair and equitable agreement. Their primary duty is to help homeowners develop a repayment plan which will be accepted by the bank and allow them to remain in their home. Although foreclosure rates are currently at an all-time high, most banks are willing to work with homeowners and help them avoid foreclosure.
Loss mitigation specialists can offer multiple options to individuals facing foreclosure. First, bank loss mitigators must review the Borrower's financial situation to determine which option would be in their best interest. This requires the debtor to provide documentation of their income and expenses, current year tax return, checking, savings and retirement accounts.
The most common option offered to homeowners facing foreclosure is Loan Modification. Bank loss mitigators can help Borrowers develop a repayment plan and extend the terms of their loan. Loan modifications can be exceptionally helpful for individuals who have fallen on hard times, but have the ability to get back on track.
Typically, loan modifications require the Borrower to pay a higher mortgage payment for one or two years. When the delinquent amount has been paid in full, the mortgage payment is then reduced. Other loan modifications reduce or suspend mortgage payments for a short period of time. Experienced bank loss mitigators possess the ability to present a variety of options and create a win-win situation for all.
When circumstances prevent Borrowers from paying any portion of their mortgage debt, bank loss mitigators can assist in the negotiation of a short sale. Using this option, banks allow Borrower's to sell their home for less than is owed on the mortgage balance. This option is usually reserved until all other options to save the home from foreclosure have been exhausted.
Bank loss mitigators are not authorized to accept or deny loan modification or short sale agreements. Instead, they are the middleman who works with both parties in an attempt to keep losses to a minimum.
Simon Volkov real estate short sale experts offer a shortsale solution that make sense. Individuals facing foreclosure that needs to sell short sale real estate quickly, submit your information via our Short Sale form. A representative will contact you within 48 hours