Loss Mitigation: What should I know?

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When you are facing foreclosure, it is a stressful time in your life. Your financial burdens have become so overwhelming and now you are worried about losing your home. During these times, you’re concerned about the well-being of your family and where you will live. Your house has become your home and it is something that is hard to let go of. If foreclosure on your property becomes a reality, it is necessary to consider your options. Consult our attorneys for legal counsel to find a way to save your house.

What is the Loss Mitigation Program?

Loss mitigation describes a program that may be able to stop the loss of a debtor’s property to foreclosure. It can also help to get rid of increased costs that debtors could be entitled to pay lenders. In order to make this process successful, loan modification, loan refinance, short sale, forbearance and surrender of property may have to be a part of the deal that is made. This can include one of these options or a combination of a number of these options.

How does this program proceed?

To begin the process, the parties involved in loss mitigation must address the time and method for conducting the sessions that will ultimately decide on a solution. For these solutions, each one should be considered and the best fit or a combination of options should be chosen to resolve the issue. During this process, the Bankruptcy Court is highly involved. They want to be updated on the progress between the two parties involved in the loss mitigation situation. If more time is needed to reach a resolution, the Bankruptcy Court must get involved if both parties do not approve of this extension. Their involvement is to ensure a fair process for each party that is involved.

What documents will I have to provide to support my standing?

To be considered for loan modification programs, applicants must have specific documents to provide the bank with. These documents include financial statements or profit and loss statements, personal or business bank statements, pay stubs from each wage earner in your family, personal or business tax returns, a current utility bill proving your residence and a hardship letter. The hardship letter is required to explain your reason for your default and your current ability to pay the mortgage.

Since these times can be emotional due to instability, it is best to acquire legal representation. Through the help of a professional attorney, individuals are better equipped to handle such a situation. They can go into the program knowing what to expect. Our attorneys can facilitate the process and take some of the burden off your shoulders. We want to help in any way that we can to ensure that you do not lose your home. Contact us today for a consultation.

If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.