Glossary

Loss Mitigation

A servicer's department and process for avoiding foreclosure through modification, forbearance, short sale, and similar tools. This is where real help lives.

Servicers are required by federal rules to give borrowers a chance to pursue loss-mitigation options before proceeding to foreclosure. Calling your servicer's loss-mitigation department directly — not their general customer service line — is one of the most important early steps in a foreclosure situation. A HUD-approved counselor can help you navigate this.

Read more in the Field Guide:

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