What is a loss mitigation plan?
A loss mitigation plan outlines the steps a servicer will take to help a borrower avoid foreclosure. Plans may include repayment strategies, assistance options, and timelines. Freddie Mac requires servicers to develop and document these plans for delinquent borrowers.
Related FAQs
- Can foreclosure be paused?
- What is a pre‑foreclosure review?
- Why do servicers evaluate borrower capacity during delinquency?
- Why does Freddie Mac require servicers to document borrower communication?
- What is a foreclosure alternative?
- What is early delinquency intervention?
- Can delinquency be resolved without formal assistance?
- What is a delinquency notice?
- Why do servicers ask about hardship reasons during delinquency?
- How does delinquency affect credit?
- What is a deed-in-lieu of foreclosure?
- What is a short sale?
- Can foreclosure be avoided?
- What is a repayment plan?
- What happens when a loan becomes delinquent?
- What is reinstatement?
- Can delinquency be resolved without long-term consequences?
- How soon does the servicer contact borrowers after a missed payment?