Formal Loss Mitigation – Friend or Foe? • NACTT Academy

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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From the Editor

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By The Honorable William Houston Brown (Retired) Debt buyer was debt collector under FDCPA. The Ninth Circuit agreed with the Third Circuit that an entity purchasing consumer debts qualified as a debt collector under the Act, 15 U.S.C. § 1692(a)(6), even though it outsourced the actual debt collection activity. McAdory v. M.N.S. & Assoc., LLC, 952 F.3d 1089 (9th Cir....

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