How do I become a loss mitigation specialist?

To become a loss mitigation specialist, earn a bachelor’s degree in business, finance, or a related field. Research real estate processes, homeowner programs, and loan management. Gain work experience as a loan underwriter, loan officer, or mortgage consultant to learn how the mortgage industry works.

What does loss mitigation consist of?

“Loss mitigation” is what the mortgage-servicing industry calls the process where borrowers and their loan servicer work together to avoid a foreclosure. The term “loss mitigation” refers to a loan servicer’s duty to mitigate or lessen the loss to the investor (the loan owner) resulting from a borrower’s default.

What is a loss mitigation team?

Loss mitigation is used to describe a third party helping a homeowner, a division within a bank that mitigates the loss of the bank, or a firm that handles the process of negotiation between a homeowner and the homeowner’s lender.

What does a loss mitigation underwriter do?

Loss Mitigation Underwriting (LMU) — the process of providing insurance coverage for existing litigation or for litigation that is imminent.

Why is my mortgage in loss mitigation?

Loss mitigation refers to the steps mortgage servicers take to work with a mortgage 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 you stay in your home.

What is the difference between loss mitigation and loan modification?

The Loss Mitigation Program is available to debtors so that they can work with lenders to reach an agreement. It is during this time that the debtor may be able to apply for a loan modification. After they apply, the bank will determine whether or not the individual is eligible for the modification.

Does loss mitigation affect your credit?

Loss mitigation is a “catch-all” term that refers to any option that will help a homeowner who is behind on a mortgage to get caught up. There are several such options, and they have varying effects on credit. The good news is that a forbearance will not negatively affect your credit.

What does forbearance mean?

Forbearance is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. Forbearance does not erase the amount you owe on your mortgage. You will have to repay any missed or reduced payments.