Confusing cause and effect is one of the most common logical fallacies. It's a principal component of most propaganda. It's also known as the correlation/causation error, Post Hoc Ergo Propter Hoc or the false cause fallacy.
Loss Mitigation. Loss mitigation is a process used by mortgage lenders to work with buyers who are delinquent on their home loans. Through the loss mitigation process, a lender may modify the terms of a home loan, allowing the homeowner to sell the property for less than is owed, or transfer the deed back to the lender. The goals of loss mitigation are to reduce the potential loss being incurred by a lender when the borrower is delinquent.
What does loss mitigation mean? Due to our economic crisis homeowners have begun to fall behind on their mortgage payments and are in great danger of having their home foreclosed on. So because of this the term âloss mitigationâ tends to be used more than ever before. This is actually an attempt by your current mortgage lender to reduce their loss as much as possible in the event the homeowner defaults on their monthly payments. The lender will try to regain as much as the loans value as possible even though they are likely to suffer some loss.