bank foreclosure, loss mitigationLoss mitigation can help ordinary hard-working families to avoid bank foreclosure. Loss mitigation involves negotiating between the financial institution and delinquent mortgage holder in order to reach a deal that suits both parties. If you are a home owner there are several things you can do to avoid bank foreclosure. If you wish to keep living in your home then you should look at different retention options. For example, your bank might agree to a repayment plan. This means that the money you did not pay is divided up and added to your regular payments for a period of between six and eighteen months. You will avoid bank foreclosure and you can get back on track after a certain amount of time has elapsed. Your lender might also agree to modify your mortgage loan by reducing the interest rate and extending the term so that you repay the past due amount at the end. If loss mitigation negotiating fails to get a retention plan you can still avoid a bank foreclosure if you can manage to sell the property to a third party before the foreclosure sale takes place. You also have the option of giving the lender back the property voluntarily to avoid having the bank foreclosure on your credit report.