New York City Loss Mitigation Lawyer

Loss mitigation comprises various options mortgage servicers assess as an alternative to foreclosure of a borrower’s home. Loss mitigation options include both home retention and surrender of the property prior to foreclosure. Such loss mitigation options may include a short sale, forbearance agreement, repayment plain, deed-in-lieu of foreclosure or a loan modification.


Almost all loss-mitigation applications require you to detail: the nature of your hardship, the cause of your hardship, the change in financial circumstances that is preventing you from paying your mortgage, the date your hardship began, and whether your hardship is short or long term. A hardship may be unemployment, temporary or permanent disability, uninsured medical expenses for a family member, divorce, death, litigation, or other unavoidable circumstances that have caused a significant reduction of income and increase of expenses. It is essential that a hardship affidavit be comprehensive, detailed and supported by documentary evidence to support your claims.

Investor requirement

Once you’ve obtained a mortgage, your lender may sell your mortgage to a private investor. If you experience a hardship and are unable to pay your mortgage, the private investor will determine your eligibility and form of loss-mitigation assistance. Private investors are not required to offer loss mitigation options but typically do so to minimize their risk of loss

Repayment Plan

A repayment plan is an agreement between a lender and a homeowner where the lender agrees to spread a homeowner’s overdue mortgage payment amount over a specific period. A portion of the overdue amount is added to each of the homeowner’s regular monthly mortgage payments. At the end of the repayment period a homeowner will become current on his mortgage and resume making monthly mortgage payments. A repayment plan is a viable option for a homeowner that has missed one or several payments due to a temporary hardship

Forbearance Plans

A Forbearance agreement is an agreement between the lender and a homeowner where a mortgage lender agrees to reduce or suspend the mortgage payments for a specific time-period to permit short-term financial relief to the homeowner. The borrower gains time to improve his financial situation and the possibility of qualifying for a better option on a later date. According to the terms of the forbearance agreement, the bank won’t initiate or continue foreclosure proceedings during the forbearance period. This is most applicable for homeowners’ that have experienced job loss, disability, illness, recent disaster, divorce, death of wage earner or other unique circumstances.

Short Sale

A short sale occurs when a homeowner’s lender/servicer agrees to the sale of a homeowner’s property to a third-party in an amount that is less than what is owed on the mortgage. It’s a foreclosure alternative where a borrower sells the home for less than the balance remaining on the mortgage. In a short sale the homeowner’s lender/servicer agrees to the sale of a homeowner’s property to a third-party at a significantly discounted amount. If the lender approves a short sale, a homeowner’s unpaid portion of the mortgage is canceled, and the debt obligation owed to the lender/servicer by the homeowner is satisfied. A short sale terminates the homeowner’s foreclosure action, reduces their overall debt and prevents the derogatory entry of a foreclosure sale on the homeowner’s credit report.  In some cases, relocation assistance may be available. However, the homeowner’s inability to benefit from the proceeds of a short sale, and potential tax liability regarding their cancelation of debt necessitates counsel with an experienced foreclosure defense attorney to determine whether a short sale is a homeowner’s best option.


Deed-in-Lieu is a foreclosure alternative where a borrower voluntarily transfers the ownership of the property to the mortgagee in exchange for a release from the mortgage loan and payments. The borrower may be required to pay off the remaining mortgage balance if the value of the property is lower than the amount owed. A deed-in-lieu allows the borrower to transition out of the home without going through foreclosure. In some cases, borrowers may be eligible for compensation in the form of relocation assistance.
Our legal team will take the time to understand your circumstances, fully explain your rights and explore all your options. You’ve worked hard to be able to own a home and we will work tirelessly to help you save it. Call our office today or complete the online contact form to arrange a consultation.

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New York NY 10004