Loss Mitigation and Avoiding Foreclosure
By L. Jed Berliner, Springfield Bankruptcy Attorney on Mar 11, 2007 in Chapter 13 Bankruptcy, Foreclosure Issues, Massachusetts, Mortgages, Personal Finance, Protecting Assets In Bankruptcy, Role Of The Lawyer
It sure can get confusing to Google either phrase in this title. And it gets even more confusing to look into the services that are offered by the “hit” companies.
Loss mitigation can be a valuable service, where a mortgage lender works with you to avoid foreclosure, Perhaps the missed payments are added to the end of the mortgage (along with 30 years’ more interest on them, by the way!), or perhaps you are given up to 12 months’ larger payments to make up for what you missed. The mortgage lender itself can do this, and other companies can help you complete the required forms if you need that assistance.
Some companies won’t tell you that you cannot be helped until very shortly before the actual foreclosure sale, well after you’ve paid them their fees, which leaves you with extremely little time to work with a bankruptcy attorney and save your home. Beware, and be careful to watch the deadlines. You can read the results of my brief online investigation of one company here.
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