Recently I saw the video showing Bank of America talking about Loss Mitigation on Facebook. As I was talking about this with a friend of mine, it dawned on me: What the heck is loss mitigation? I’m in the real estate so I know what it means, but my friend asked me if I thought people really knew what that meant. My answer was no, so decided to write about.
Loss mitigation is a couple of things. For starters, it is the process of a bank or lender trying to minimize their financial loss on a mortgage or auto loan or other type of loan that has either gone into default or is going into default. A second definition of Loss Mitigation is simply what the department at many if not most of the mortgage lenders/banks call their department that handles all of the short sales and foreclosures in their respective banks.
