Bank loss mitigators are individuals who work with homeowners facing foreclosure. The majority of loss mitigators are employed by banks and lending institutions. However, there are also independent agents who work on behalf of the homeowner and assist in negotiations with lenders.

The main function of bank loss mitigators is to help homeowners develop a repayment plan and enable them to save their home from foreclosure. Homeowners submit financial records outlining their income and expenses so the loss mitigator can help them determine which options are available.

If the homeowner has the ability to become current on their loan or make partial payments, bank loss mitigators might suggest a Loan Modification. If the homeowner is experiencing serious financial setbacks that prohibit them from making timely mortgage payments, the mitigator might suggest a short sale.

In the case of loan modifications, lenders might agree to reduce or temporarily suspend mortgage payments and extend the terms of the loan. For instance, if the homeowner is three months delinquent on their account, bank loss mitigators can assist in devising a plan which allows the homeowner to pay the delinquent amount over an extended period of time. Or, they might negotiate with the bank to roll the three payments to the end of the loan, giving the homeowner a fresh start.

There are many different ways to negotiate loan modifications. Professional loss mitigators are well-versed in mortgage options and can present a variety of scenarios to both the homeowner and the bank.

When homeowners do not have the financial means to become current on payments, bank loss mitigators can help the individual negotiate with the bank to arrange a short sale. Real estate short sales involve convincing the bank to accept less than is owed on the mortgage. For example, if the mortgage balance is $150,000, the bank may agree to accept $135,000. Each bank is different and some are more flexible in negotiating short sales than others.

Although bank loss mitigators can assist homeowners in loan modifications and short sales, they do not have the authority to accept or deny the request. Instead, they help individuals organize and prepare financial documents, identify red flags that could delay the process, and submit information to the lender on the homeowner's behalf.

Foreclosure is a highly-charged event that stirs up many emotions. Oftentimes, distressed homeowners vent their frustrations toward bank loss mitigators. This is the biggest mistake anyone can make, as the mitgator can make or break the deal with the lender. If you desire a successful transaction to save your home from foreclosure, by all means be respectful to the loss mitigator!

If you are facing foreclosure, realize there are options to help stop the process. The first step is to contact your lender's loss mitigation department. If the bank is unwilling to work with you, seek out independent bank loss mitigators to negotiate on your behalf. If you aren't able to afford the services of a professional mitigator and are interested in selling your home, seek out private real estate investors who can assist you with a short sale.

Although foreclosure can be quite frightening, there is an abundance of information available via the Internet. Take time to know your rights and educate yourself about the process prior to contacting your bank's loss mitigation department. Doing so will help you be prepared when presenting your case to the bank loss mitigator.

Keep in mind most banks prefer to work with homeowners and avoid the foreclosure process. Valuable information about loss mitigation options can be obtained through the Federal Housing Administration

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