Literally, dictionary-wise, mitigation means to reduce or lessen something, in this case, to lessen the loss of money to the bank holding your mortgage when you stop paying your mortgage.

What it means to you is hope of not losing your home!

You may have heard that the bank really does not want to take your house. It is true. Not only are they not in the home owning business, they suffer a big loss when they are forced to take ownership of your home.

I have seen estimates that assert that it can cost up to ½ the amount of the outstanding mortgage balance to take possession of your home and then dispose of it! That is a lot.

How can this fact be turned to your advantage?

If you know what you are doing, or better yet, hire someone who does, to negotiate with your bank's loss mit people, as they are called; to see if they can work out a financial agreement, called a "workout" that allows you to stay in your home.

They will weigh factors such as your ability to begin making your regular payments again, what caused you to fall behind in the first place (hint, it should be something beyond your control, job loss, illness, etc.), how much cash you have to pay toward your arrears, etc.

Typically, they will produce workouts that will range from forbearances, where they have you pay off maybe ½ your arrears and make higher than normal payments for the next 6 - 12 months until you have caught up; to loan modifications.

A loan modification changes one of the major terms of your loan, the term, the interest rate or the actual payments.

The modification produces better long term results, since it is a quasi permanent change, adjusting to your ability to pay.

I mentioned before that you would be better off if you hired someone to negotiate with the bank on your behalf. Makes since, doesn't it to have a professional loss mit person representing you against the bank's loss mit professionals, right?

You would not want to bring a knife to a gun fight!

A word to the wise, however. People claiming to be loss mitigators are springing up like weeds in the tomatoes.

"Yesterday, I was a dog catcher, today, I be a lost mitrigator!"

If you do decide to engage a loss mitigation company, check them out thoroughly. You are staking your home on their expertise.

How long have they been in the business, 2 weeks or 5 years? How many consultants do they have? Do they offer a money back guarantee if they are unsuccessful? How knowledgeable are their people, do they explore ideas with you that you have not heard anywhere else?

Does their website appear professional or amateurish? Do they provide helpful information for free or does the clock start running immediately? How much do they charge? You should expect to pay about 1 month's mortgage payment as the fee for their services.

That is not a bad price, considering the return!

Good luck!

Copyright 2008 Bill Young If you are facing foreclosure and need help from professional loss mitigators, check out this site, now! http://CantPayYourMortgage.Com If you would like to be trained in this lucrative new field, you can get trained and start making money referring distressed home owners to loss mitigation professionals in a matter of a few weeks, starting from home! Click here for more information: http://NeedHelpWithYourMortgage.com