Loss Mitigation Strategies

Loss mitigation strategies are actions taken to reduce the financial impact of a potential or ongoing default on a loan or mortgage. These include options like refinancing, modifying loan terms, or establishing repayment plans, aimed at making payments more manageable. The goal is to help borrowers avoid foreclosure or default, while allowing lenders to recover as much of the owed amount as possible. By proactively addressing payment difficulties, both parties can benefit from a practical solution that minimizes financial loss and preserves the borrower’s home or assets.