>>Is loss mitigation
right for you? Hello, I am Cecelia Morris, the Chief Judge of
the Bankruptcy Court for the Southern District
of New York. Many people file
for bankruptcy when their homes
go into foreclosure. If you’re one of those people,
when you file for bankruptcy, loss mitigation
might be right for you. The Southern District
of New York has a successful loss
mitigation program where you can speak
with a representative from your mortgage lender and try to work out a more
affordable payment plan for you. Loss mitigation is separate
from a bankruptcy filing. If you are being represented
by an attorney, the attorney will do
the work for you. If you are not being
represented by an attorney, after you file for bankruptcy, you must request
loss mitigation. The form and instructions
for doing so are on the court’s website. File the form with the court
and then you must mail the form to your mortgage lender
at a physical address, not a post office box,
and make sure you write, attention:
officer on the envelope. When that has been
done correctly, the court will enter
a loss mitigation order which demands that you are
your bank participate in the document exchange
and appear at court hearings. Loss mitigation
is not a guarantee that you will be able
to save your home. What it does guarantee
is that the bank will look at the various options
you may have. Loss mitigation
is only for people who own their own homes
and live in them. You cannot do loss mitigation
in this court if you rent your home
or own an income property. This is a very formal process. You must diligently gather
all of the financial documents that the bank
asks you to prepare. This will include proof
of income, bank statements, tax returns, and numerous financial forms
that the bank may send you. Actually, most of the paperwork
is the same paperwork you need to file for bankruptcy
in the first place. When you are negotiating
without an attorney, it is important that you open
all of your mail from the bank during the loss
mitigation process. If you have an attorney, be sure to give all bank
correspondence to your attorney. You may get requests to send
in additional documents. Send those
documents immediately. Loss mitigation is fast moving, and your documents
must be timely to prevent them
from going stale. When the bank asks you
for a paystub or a bank statement
or anything, you should send all of
the requested information in a complete package
within a couple of days. Timeliness and details
are extremely important if you are to be successful
in this process.