Definition Of Mitigate Loss

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 given the costs that an investor must bear through the foreclosure process loss mitigation is intended to be beneficial for the investor.

Definition of mitigate loss. Mitigate definition to lessen in force or intensity as wrath grief harshness or pain. To make something less harmful. 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. For example if it has been recommended that a claimant has physiotherapy treatment to aid their recovery.

So even if you are the innocent victim of a breach of contract you are under a duty to keep your losses down. Mitigate definition is to cause to become less harsh or hostile. Change your default dictionary to american english. Mitigation of loss andrew gray 2018 02 20t16 23 21 00 00.

How to use mitigate in a sentence. Loss mitigation is the process by which a bank tries to minimize its loss in a loan the borrower isn t repaying according to terms. Militate synonym discussion of mitigate. Loss mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure these new terms are typically obtained through loan modification.

Definition and synonyms of mitigate your losses from the online english dictionary from macmillan education. Mitigation in law is the principle that a party who has suffered loss from a tort or breach of contract has to take reasonable action to minimize the amount of the loss suffered as stated by the canadian federal court of appeal in redpath industries ltd. To make something less harmful unpleasant or bad. In a nutshell this means the bank isn t receiving.

In real estate this applies mostly to the bank working with homeowners who have been unable to make their mortgage payments. Mitigate your loss is a legal term meaning keep your losses to a minimum.