What it means:
Mitigation, often referred to as loss mitigation, involves efforts to avoid or reduce the impact of foreclosure by working with a lender to find an alternative to losing the property.

Key points:

• Occurs before or during foreclosure
• Governed by a mix of federal guidelines and state law
• Focuses on resolution outside of full-foreclosure litigation
• Often overlaps with foreclosure defence and bankruptcy

Common mitigation options:

• Loan modification
• Forbearance agreements
• Repayment plans
• Short sales
• Deed in lieu of foreclosure

Whom it applies to:

• Homeowners experiencing financial hardship
• Borrowers who have fallen behind on mortgage payments
• Property owners seeking alternatives to foreclosure

How mitigation fits into the legal process:

• May pause or delay foreclosure proceedings
• Can be negotiated directly with lenders or servicers
• Often used as a first step before litigation or bankruptcy

Important notes:

• Mitigation is a solution-focused practice area
• Not all homeowners qualify for every option
• Outcomes depend on financial circumstances and lender approval