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What is the importance of the loss mitigation affidavit?

On Behalf of | Jan 18, 2023 | foreclosure prevention |

During the foreclosure process, you will receive multiple documents. It is important to pay attention to what you receive because these papers will provide you with a range of information about the foreclosure and where you are in the process.

If you and your lender cannot agree on a loss mitigation option, you will receive a loss mitigation affidavit after the order to docket, which is the filing of the foreclosure with the court. You may receive one of two different affidavits.

Preliminary loss mitigation affidavit

A preliminary loss mitigation affidavit tells you that the lender is still working on investigating possible options you have to avoid foreclosure. You will get this when you receive your order to docket paperwork. It lets you know that the process is not moving forward because the lender is still researching and reviewing your account for an alternative to the foreclosure action.

Final loss mitigation affidavit

If you do not get a preliminary loss mitigation affidavit with the order to docket, you will get a final loss mitigation affidavit. This document tells you the lender has exhausted all options to keep you out of foreclosure and sees no possible move forward but to continue with the foreclosure.

Paying attention to the loss mitigation affidavit is important because it will help you to understand timelines. It also will give you the chance to correct the situation and reach out to the lender to find a solution to prevent foreclosure. Or it can let you know that foreclosure is imminent and you need to prepare for your next steps.

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