The benefits of using loss mitigation over bankruptcy or other options are:
- No negative impact to borrower’s credit score
- Avoid foreclosure, keep the home and still be able to sell it at market value
- Modification doesn’t impact community’s home values (since the deed is not transferred)
- Debt “forgiven” instead of settling through legal proceedings
- Create a new loan scenario that works with your financial situation
- Faster with less paperwork and red tape
