What is loss mitigation?

Loss mitigation is becoming an extremely important option for homeowners in an increasingly troubled housing market. Unfortunately, many do not know about the options that loss mitigation provides to allow you to overcome your current mortgage troubles.

The goal of loss mitigation is to work out a solution that benefits both lender and borrower. Neither party wins when a homeowner struggles to pay their loan, so lenders have great incentive to work toward a solution. While you can represent yourself during the process, it is best to use a third party such as American Mitigation Group. Our experience and understanding of the process will prove invaluable in reaching the right solution. We also find that our neutrality in the situation puts us in a better negotiating position with the lender.

As we previously mentioned, nobody wins when a homeowner can't pay his or her loan. The federal government and lending institutions know this and established loss mitigation as a means of working out a desirable solution for all parties involved.

AMG has three outstanding loan mitigation programs to utilize. Through our consultation, we will determine what program is the best for your situation. To successfully put you on a better financial path, it's important we match you with a program that will work for you now and into the future.

The three programs are as follows and you can read more about them here:

• Loan Modification - permanent change to your loan details resulting in a new contract
• Short Sale - negotiated sale of your home at a price below what you owe
• Short Refinance - refinancing of a mortgage for a loan amount typically lower than the outstanding debt.

Our main goal will be to establish a way for you to keep your home through loan modification. If keeping the home doesn't prove viable in your situation, the other two options provide an opportunity for you to get the most out of the situation with a better result than what foreclosure can offer.

Loss mitigation is a time-sensitive option and it's important you take action today. The more time you have on your side, the better chance you have of securing a positive outcome. Of course, even if you don't have much time, you should explore these options to the fullest.