Loss Mitigation refers to the program in New York bankruptcies that allows the debtor to resolve foreclosure issues with the financial institution. The purpose of the loss mitigation is to allow the homeowners to remain in their home.
The Loss Mitigation Process
The loss mitigation progress involves the debtor submitting an application for a mortgage modification to the financial institution that holds the debtor’s mortgage while in a Chapter 13 bankruptcy proceeding. There has been a loss mitigation process in the courts in the Federal Eastern District of New York since 2009. The Federal Eastern District of New York includes Nassau County, Suffolk County, Kings County, Queens County and Staten.
The loss mitigation program in Federal Bankruptcy Court is a court supervised process whereby debtors can make arrangements to modify the mortgage on their primary residence. The program enables debtors to obtain loan modifications. Financial institutions must cooperate and work in good faith in the loss mitigation process. The purpose of the program is to enable debtors through bankruptcy to modify their mortgage and end up keeping their home.
About the Author
Elliot S. Schlissel, Esq. has been practicing bankruptcy law for over 35 years. He is the managing partner of Schlissel DeCorpo LLP. The law firm represents debtors in foreclosure defense and helps debtors file bankruptcy cases and obtain mortgage modifications. They can be reached for a free consultation at 800-344-6431 or by e-mail at Elliot@sdnylaw.com.