Traditionally a loss mitigation specialist is an employee of a financial institution connected to the loss mitigation department. However, many freelancers have also nudged their way into the sector given the potential for income that it offers along with the opportunity to lend a helping hand to a home owner in financial peril. A loss mitigation specialist helps the lending institution recover its dues from its borrowers.
The Role of a Loss Mitigation Specialist in the Lending and Borrowing Processes
While a loss mitigator does not play a role in the actual procurement of the loan, these professionals do come into the picture when a borrower finds it tedious to meet his obligations. A loan mitigation specialist provides an assortment of solutions with the aim of helping the borrower hold on to his asset and aiding the lending firm to minimize its losses. It is also normal for investors interested in pre-foreclosure or foreclosure properties to enlist the help of individuals in loss mitigation.
The Functions of a Loss Mitigation Specialist
Professionals who work as loss mitigators come into the picture when the lending institution feels that the borrower will not be able to pay his loan leading to an inevitable loss for the firm. A loss mitigation specialist is empowered to offer solutions such as short sales, loan modifications, repayment plans, lowering interest rates to make repayment feasible, foreclosures and deed-in-lieu. The loss mitigator is responsible for contacting the delinquent borrowers and making all account adjustments.
Careers in loss mitigation are both challenging and rewarding; while there is always an opportunity to seek full or part time employment with a bank, many loss mitigators choose to be their own bosses and offer consulting to various parties. These professionals usually work from a comfortable office environment with no field work involved. Most are expected to put in at least 40 hours a week; however, there may be more work on the table when interest rates are low or the real estate market takes a beating.
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An individual interested in a career in loss mitigation will need to at least have a high school diploma; he/she will also be expected to go through a background check. For a loss mitigator, problem solving, negotiation and decision making skills are extremely important. A loss mitigation professional has to stay abreast of all the legalities and polices associated with loss mitigation. He/She will also need to be a diligent analyst who has the ability to spot deviations in an account that point to repayment issues.
According to the Bureau of Labor Statistics, the demand for loss mitigation specialist is expected to grow by a whopping 10% between 2008 and 2018. These figures may further swell in the face of an economic revival when the real estate markets regain their allure and even if the financial markets continue their plunge. So, it would be safe to suggest that loss mitigation careers are protected from economic volatility, making them extremely rewarding.