Loss Mitigation Information

Please note that on 3/11/14, The U.S. Bankruptcy Court issued General Order 14-001, amending the Loss Mitigation Program and Procedures, effective April 1, 2014.  The Loss Mitigation Program will provide a uniform, comprehensive, court-supervised program for facilitating consensual resolutions of residential real property at risk of loss to foreclosure for individual debtors in bankruptcy. This program is patterned closely on a similar program in place at the United States Bankruptcy Court for the Southern District of New York.

This loss mitigation program is intended to avoid or reduce unnecessary bankruptcy litigation and cost to debtors and secured creditors, and to enable debtors to reorganize or otherwise address their significant debt and asset structure under the Bankruptcy Code. The need for such a program is evident in light of the various government sponsored loss mitigation programs (Making Homes Affordable) introduced to address the systemic mortgage defaults and the decline in the current residential housing economy nationwide, including the District of Rhode Island.