The stakeholders that are involved in Loss Mitigation negotiation will be identified in this paper. Both the internal stakeholders and external stakeholders will be included. Once the stakeholders in the loss mitigation negotiation are identified then a negotiation strategy is going to be selected and explained. The negotiation strategy this is selected will be taken to explain how the different stakeholders are affected in the negotiation process.
In the loss mitigation negotiation process the internal stakeholders are the internal stakeholders is the homeowner, public or private lenders. Homeowners is the individual that owns the property he or she is living in. Public or private lenders are the companies that the homeowners get his or her loan from to purchase his or her house or property.
The external stakeholder is secondary market (Fannie Mae and Freddie Mac), the loan services, mortgage insurers, and the neighborhoods. Secondary Market: 1) Fannie Mae is a company that is a government sponsored enterprise. Fannie Mae works with brokers, other primary mortgage market partners, and mortgage bankers to help ensure he or she has funds to lend to home buyers at reasonable rates. Fannie Mae funds the companies mortgage investments primarily by issuing debt securities in the domestic and international capital markets. 2) Freddie Mac is a company that buys mortgages from depository institutions, principally savings and loan associations, this encouraged more mortgage lending and effectively insured the value of mortgages by the US government. Another external stakeholder is the mortgage insurers, this individual offers insurance to help protect the lenders from loss from homeowners that default his or her loan. This type of insurance is usually issued by a private lender or the FHA. The neighborhoods is the people that live in the surrounding areas the homeowner lives. Loan services are the...