loss mitigation practices

Loss mitigation practices are strategies used by lenders to help borrowers reduce the risk of defaulting on their loans. These methods include offering payment plans, refinancing, loan modifications, or forbearance, which can lower monthly payments or extend the loan term. The goal is to make payments more manageable, allowing borrowers to avoid foreclosure or repossession. By working with borrowers early, lenders aim to minimize financial loss while helping individuals keep their homes or assets.