How Does the Loss Mitigation Process Work in New York State?

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How Does the Loss Mitigation Process Work in New York State?

If you are a homeowner in New York, your home is most like the most important asset you own. Not only is it probably the most significant financial asset in your ownership, but it is also a sentimental one. This is why if you are someone who recently received one or more foreclosure notices, there is a very good chance that you are now very concerned about your future and that of your home. Fortunately, there are options on the table, one of them being loss mitigation. Please read on and reach out to our experienced Rockland County foreclosure defense attorney to learn more about how our firm can assist you through every step of the legal process ahead. Here are some of the questions you may have:

How does loss mitigation work?

If you are someone who missed one or more of your mortgage payments and you’ve received notices from your lending company regarding the potential foreclosure on your home, the time to act is now. One of the most effective solutions to foreclosure on a home is loss mitigation. Essentially, during the process, your lending company will work alongside you to lower your regular mortgage payments, giving you more financial breathing room. Mortgage payments that are delinquent for 45 days require your lender to appoint loss mitigation to assist you, the borrower, in accordance with federal mortgage servicing laws. During the process, you should understand the following (our attorneys can help):

  1. The loss mitigation programs that may be available options to you
  2. How to submit a complete loss mitigation application
  3. The status of your submitted loss mitigation application
  4. How to appeal your loss mitigation application in the event that it is denied

What documents will I have to provide in my loss mitigation application?

As you know, foreclosure defense is an area of law that is often document-heavy, which is why if you are someone who is looking to apply for the loss mitigation program, you will have to provide various documentation to the bank so the bank can determine whether you qualify. Some of the documentation that you must provide are as follows:

  • Financial statements
  • Bank statements
  • Tax returns
  • Paystubs from each wage earner living in your household
  • A current utility bill
  • A hardship letter detailing why you are unable to make regular mortgage payments

If you have any additional questions or you are ready to get started, please do not hesitate to speak with our knowledgeable New York foreclosure defense attorney today. Our firm is here to assist you.


Here at The Law Offices of David M. Katz, P.C., we understand how frightening the prospect of losing your home due to foreclosure can be. For this very reason, our experienced attorneys have dedicated decades of our professional careers working to help those facing foreclosure stay in their homes and move on with their lives. Contact our firm for the experienced, compassionate guidance you deserve and need. 

How Do We Fight Against Foreclosure?

The Law Office of David M Katz, P.C. has extensive experience helping New Yorkers save their homes from foreclosure. Foreclosure itself has a wide range of impacts that can be avoided with the help of our firm. It is time to get the relief you deserve. Contact us today.

Loan Modification

You may be eligible to save your home by adjusting your mortgage. Every residential foreclosure lawsuit must go to the Foreclosure Settlement Conference to see if you qualify for a loan modification. We can represent you.

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Loss Mitigation

Loss mitigation stops foreclosure in its tracks, requiring your lender to assess your financial ability to see if you qualify for a government or internal bank loan modification. Having an experienced attorney is invaluable.

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Mortgage Litigation

You may be facing an illegal foreclosure, and it may stem from the terms of your loan, or much more. Our law firm is ready to explore every potential defense on your behalf.

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