Formal Loss Mitigation – Friend or Foe?

By Gerard T. Forget III JD, MBA, LLM

Is it time for bankruptcy courts to implement formal loss mitigation procedures to control mortgage modifications between mortgagors and consumer debtors?  Formal loss mitigation is the creation of communication between the debtor and mortgagor, in hopes of bypassing foreclosure and arriving at a solution beneficial to both parties.  Loss mitigation has the capability of helping many consumers, but there are certainly draw backs.  Loss mitigation takes time to arrive at an equitable solution for both parties.  The additional time subsequently increases the overall cost of the bankruptcy, which is frowned upon due . . .

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