Loss mitigation attorneys are practicing lawyers with knowledge of bankruptcy, property, real estate and tax law, and laws related to modifying home loans. This knowledge is necessary for their work with homeowners struggling to make mortgage payments. They negotiate with lenders and help homeowners understand their options when it comes to making changes to their loans.
Loss mitigation attorneys generally work for homeowners who cannot make their mortgage payments. They negotiate with lenders to make changes to loan agreements and prevent foreclosure. Loss mitigation attorneys possess an understanding of bankruptcy, business, property, real estate, and tax law. A bachelor's degree followed by three years of law school is the necessary education for this vocation. Loss mitigation attorneys have to pass a bar examination to be licensed with the state.
|Required Education||Juris Doctor; coursework in real estate, accounting, business and tax law suggested|
|Licensure/Certification||Admittance to the American Bar Association for state licensure|
|Projected Job Growth (2014-2024)||6% for all lawyers*|
|Average Annual Salary (2015)||$136,260 for all lawyers*|
Source: *U.S. Bureau of Labor Statistics
Job Description of a Loss Mitigation Attorney
Loss mitigation attorneys are knowledgeable of state and federal laws and procedures required to make home loan modifications. They can help homeowners avoid foreclosure by negotiating for interest rate reductions, payment plans, or loan payoff extensions.
Loss mitigation attorneys review individual cases and provide homeowners with possible options. They educate their clients on the loan modification process and become the point-of-contact for discussions between homeowners and lenders. They may examine loan origination documents for information that can be used during the negotiation process.
Loss mitigation attorneys help homeowners complete loan modification applications and gather documentation to be used during legal proceedings. They serve loss mitigation notices and proposed modifications to lenders and continue the negotiation process until they find mutually agreeable options for both parties.
Salary of a Loss Mitigation Attorney
According to the U.S. Bureau of Labor Statistics (BLS), the projected job growth for all lawyers from 2014-2024 is projected to be 6%. Attorney salaries can cover a vast range depending on the kind of law practiced, the size of the firm and the location. The average annual salary for all attorneys was $136,260 in May 2015, according to the BLS.
Loss mitigation attorneys may work for law firms or nonprofits that represent homeowners facing foreclosure. Attorneys who work for nonprofits like legal services organizations or public interest groups may earn tens of thousands of dollars less than their counterparts in law firms.
In a 2012 salary survey by the National Association for Law Placement (NALP), public interest attorneys earned a median salary of $45,000 for entry-level positions and $75,000 with at least 11 years experience. In contrast, a recent 2013 survey shows first-year associates in the smallest law firms (two to 25 associates) earned a median annual salary of $78,000 while first-year attorneys working for firms with 251 or more associates earned about $160,000 a year, according to the NALP.
Career Info for Loss Mitigation Attorneys
Attorneys, in general, can be advocates and advisors to their clients. They work on behalf of their clients and must be able to explain the legal avenues available to them. Lawyers must be able to research the laws as they affect their clients.
Lawyers spend most of their working time in an office or courtroom. Attorneys on salary tend to have more predictable work hours while those in private practice may work odd hours and weekends.
Attorneys often work more than 40 hours a week and many full-time attorneys work more than 50 hours per week, according to the BLS. Their hours can increase with larger caseloads or impending court hearings or trials.
Aspiring loss mitigation attorneys must complete law school and pass a bar exam in order to practice. They then work as advisors and legal counselors to clients struggling to make mortgage payments. They may review documents, negotiate with lenders, and help with the application process for making changes to a home loan.