Loss mitigation is a method used for preventing your home from being foreclosed. If a homeowner becomes behind on their mortgage payments, they may be able to save their home by loss mitigation.

Generally with loss mitigation, there is a third party that will act as a mediator between the homeowner and the mortgage lender. This mediator will attempt to help the two parties make arrangements that both parties can agree on. This is often in the form of a payment plan that is suitable for both the homeowner and the mortgage lender.

As soon as it becomes apparent to you that you are at risk for foreclosure, you should immediately contact a financial counseling institution that specializes in loss mitigation. The sooner that you can start proceedings the more successful you are likely to be in getting the mortgage lender to work with you on the loss mitigation.

Generally, a mortgage lender may make you wait until your are a few months behind before they will consider making arrangements to prevent foreclosure. It is not necessary however, for you to wait to contact a debt counseling institution. By contacting one of these institution early, you can get everything pre-arranged to help make the process go much more smoothly.

Loss mitigation does not only consist of making arrangements for payments with your mortgage lender. With loss mitigation, the mortgage lender and the homeowner can also make agreements to change terms that are in their loan contract. These changes can include terms such as the interest rate and the length of payment terms. By convincing the mortgage lender to reduce lower the interest rate and lengthen your payment terms through loss mitigation, you can not only save a great deal of money but lower your monthly payments making the loan easier to pay off.

While many people may feel that they can adequately handle dealing with their mortgage lender themselves, it is far more beneficial to them to go through a loss mitigation service. Too often, people can become to emotionally involved when dealing with the situation and become argumentative with their mortgage company. This in no way will help them accomplish what they are hoping to achieve. By using a financial firm that specializes in loss mitigation, they gain the assistance of a neutral party that can remain calm when negotiating with mortgage lender which can be much more beneficial to a positive outcome.

If you are behind on your mortgage, or see yourself getting behind, you should definitely consider a loss mitigation to try and help you keep your home from going into foreclosure. Additionally, make sure that you completely understand any modifications that are made to your mortgage contract. If you have any questions, get the person who is handling your loss mitigation to explain them to you. By making sure that you have a good grasp on the new modifications, you can prevent yourself from ending up in the same situation in the future.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Why Talking to the Collection Department Won't Stop Foreclosure
If you are among the millions of homeowners now facing foreclosure, or you know someone who is, you may be talking to the wrong person or department at your mortgage company to try and stop foreclosure. If you've been calling the Collection Department with your mortgage lender for help to stop it, ... more...

So What is Loss Mitigation?
Loss Mitigation is the art of helping delinquent homeowners, in or close to foreclosure, to save their home and of trying to stop a home foreclosure before it happens. It is an intervention program designed to help homeowners save their homes from foreclosure, through third party negotiations with ... more...

Stop Foreclosure - How To Do It Yourself Or Hire A Specialist
How do you stop foreclosure and stay in your house? This is a question millions of homeowners are asking themselves right now. Did you, or someone you know, already get that nasty notice from your mortgage company telling you to "Pay or Get Out?" If you have received an NOD, or Notice of Default, ... more...

Stop Foreclosure In Its Tracks!
Loss mitigation was introduced as a collaborative effort between the federal government and the mortgage industry to prevent foreclosures. So, loss mitigation is defined as the process of trying to stop foreclosure before it occurs. The art of loss mitigation requires helping delinquent homeowners, ... more...