How To Become a Loss Mitigation Specialist

A loss mitigation specialist is someone who may just save your entire life savings off mortgage delinquency or property foreclosures. As a loss mitigation specialist or simply a loss mitigator, as they are often called, you need to know how to deal with the multitude of different cases that come your way to keep people from losing money and property.

Loss mitigation is normally found in banks that set up a specific department to analyze and mitigate the loss of the bank. It has evolved into other forms such as third party firms helping both the borrower and the lender, mostly in the mortgage industry. Popular terms associated with loss mitigation are deed-in-lieu of foreclosure, short refinance negotiations, special forbearance, loan modifications, short sale, cash-for-keys negotiation, partial claim and the like. Conclusion is, you will be the negotiator. It may sound a tough job to handle but to be successful in this line of work, all you need is a good arsenal of communication skills, knowledge about the mortgage business and the techniques to be able to shrug off delinquency and turn it into a short sale agreement or a favorable loan modification.

In dealing with homeowners who are facing the possibility of getting trouble with their mortgage payments, you need to give them heart to face the challenges involved. Analyze the situation and try to put yourself in their shoes to be able to provide them the best solution in terms of working out their payment schemes with the property lender. Also, you need to consider all possibilities including sudden loss of job scenarios or other emergency situations that require sacrificing their mortgage payment. You need all these to present a viable solution to the lender either to guarantee a pre-foreclosure workout or extensions to the terms of the loan, modifications in interest rates if possible and other changes that free your clients of the worries. Your main job is to get the bank or the lender to agree with the terms you designed to avoid your client from having a negative equity. A negative equity is when the property is worth less than the amount it was originally owed. A normal aftermath is people just leaving their properties to foreclosure due to inability to settle their mortgage responsibilities.

As a fully fledged loss mitigator, you must be able to work with other networks such as realtors, lenders and investors who see distressed property situations as a golden opportunity to earn a fortune. A loss mitigator should find ways in how the business can focus on what it does best and minimize its concerns regarding real estate short sales. Know that short sales are time-consuming efforts that can easily drain ones company’s resources. When working with realtors and businesses, try your best to keep their gains high while making ways to keep foreclosure possibilities low.

Though these skills will get honed through experience, the learning process involves doing adequate research about related and relevant cases. Attending conferences or webinars can also be a great help in keeping you shaped up to this ever-growing business.


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