Loss mitigation

Description

Loss mitigation

The steps mortgage servicers take to work with a borrower to avoid foreclosure. Loss mitigation refers to a servicer’s responsibility to reduce or “mitigate” the loss to the investor that can come from a foreclosure. Certain loss mitigation options may help a borrower stay in their home. Other options may help a borrower leave their home without going through foreclosure. Loss mitigation options for reverse mortgage borrowers may include a deed-in-lieu of foreclosure or a repayment plan.