Loss Mitigation Options to avoid Foreclosures


If you are having problems making your mortgage payments, you should explore all options available to you in order to avoid foreclosure.


Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. Foreclosure will damage your credit rating and your ability to borrow money-or buy a home- in the future.


HUD CERTIFIED COUNSELING AGENCY 1-800-569-4287 or TTY 1-800-877-8339

HUD approved housing counselors can help you understand the law and your options, assist in organizing your finances and represent you in negotiations with your lender if you need their assistance. Call the above toll free number to locate the agency closest to you.


  • If your loan has not matured, contact your lender and request reinstatement figures to bring your account current
  • Refinance your home with another lender and pay off existing liens. While your current situation may not allow you to obtain financing, you should none the less explore all options available
  • If you are unable to refinance your home, you may be able to sell it before you lose it to foreclosure. If your property is worth less than what you owe, you may be eligible for a short sale transaction, whereby existing lien holders may agree to accept less than the full amount owed for satisfaction of the notes against the property.


Depending on your financial situation, and subject to the lender's policies and procedures and the terms of your Note (privately funded loans are not generally eligible for any federal, state or lender guideline foreclosure prevention alternative program as a forbearance or modification would be subject to majority lender approval), you may be able to arrange for the following in order to delay or avoid the foreclosure of your property:

Forbearance Agreement

Forbearance is a formal, written agreement between the borrower and the lender to reduce or suspend monthly payments for a specific period of time. This means that for a period of time, you would either pay only a portion of your regular mortgage payment or not make any payments at all. At the end of the agreed-upon period, you would be required to resume regular monthly payments as well as pay additional funds to make up for the past due amount. During the time that the payments are either suspended or reduced, you would have the opportunity to resolve the financial hardship you are facing.

Loan Modification

In situations where the lender does not believe that a repayment plan or forbearance is the appropriate course of action, a loan modification may be considered. A loan modification involves changing one or more of the terms of a mortgage in order to keep your defaulted loan current and prevent foreclosure. This option generally is considered for homeowners whose financial problems are expected to be more long term.

Repayment Plan

The lender may be able to arrange an increase in monthly payments until the loan is brought current. This means that each month you would add an additional amount of money (determined by the lender) to your regular monthly payment until the amount that was overdue has been repaid.
Financial documents borrowers should collect and be prepared to present to the beneficiary or authorized agent (County Records Research, Inc.) when discussing options for avoiding foreclosure:

  • Please collect your data materials prior to attempting to update your information ( e.g., 2 months checking/savings account statements, most recent years W2 or 1099 forms, tax returns, mortgage statements, property tax bills, insurance information, credit card information, loans, monthly expenditure records, 2 months pay stubs for all borrowers, list of assets, monthly budget breakdown, etc.
  • When you submit the information, you're attesting that it is true to the best of your knowledge. If a material change occurs to your financial situation after submitting the information, you will need to immediately notify County Records Research, Inc..
  • By submitting this information, you are authorizing County Records Research, Inc. to make whatever inquiries it deems necessary to verify its accuracy.
  • Any material misrepresentations you make may result in immediate termination of any agreements made based on the information you provide.

If an Agent or Representative represents the borrower, then the borrower needs to complete the Agent Authorization Form.
The toll free telephone number to County Records Research is (800) 664-2567 for borrowers who wish to discuss options for avoiding foreclosure with their mortgagee, beneficiary, or authorized agent.
Business hours are 8:30 a.m. to 5 p.m. PST, Monday through Friday.

Rosenthal Fair Debt Collection Practices Act

Please be advised that CRR is attempting to collect a debt and any information obtained will be used for that purpose.   "The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov."

Fair Debt Collection Practices Act Notification

Pursuant to and in compliance with the Fair Debt Collection Practices Act (Federal 15USC 1692) and California (Civil Code 1788 et seq) the Agent hereby provides the following notification(s):

This notice is being sent for the purpose of collecting a debt.  This firm is attempting to collect a debt on behalf of the holder and owner of the Note.  Any information obtained by or provided to this firm or the creditor will be used for that purpose.

The debt described in this Notice is assumed to be valid unless the debtor disputes within 30 days and that, if disputed, debt collector will obtain and furnish to debtor the verification.  If written request is made within 30 days by debtor, name of original lender will be given if different than the current creditor.  To find out more about HUD approved housing agencies and their services please call (800) 569-4287 on weekdays between 9:00am and 5:00 pm ET (6am to 2pm PT).