Section 1 Part 4 The Homeowner

This entire process is borne out of the unfortunate consequences of the homeowner's unable to keep current on their mortgage obligations.

The lender may have tried to reach out to the homeowner but for whatever reason, the loss mitigation process bore no fruit and the lender made the unfortunate choice to foreclose.

The homeowner must be in foreclosure in order for them to access the loss mitigation protocols within each lender's default criteria solutions. Once the loan is in default status the lenders' loss mitigation departments become involved.

The Loss Mit department will bring to the forefront the lenders' “special servicing” sector. The special servicing includes stepped-up mail and phone call programs. If the homeowner answers the phone, they talk directly with a “counselor” in the loss mitigation department.

If, on the other hand, the homeowner doesn’t answer or return calls, they remain blind as to the continuing efforts by the bank to help get the loan settled. Loss mitigation calls are intended for the lender to get an idea from the homeowner if the situation can be corrected and therefore salvaged. Without cooperation from the homeowner, the uninformed lender only has one choice. They must foreclose.