LOSS MITIGATION INFORMATION
By General Order dated October 22, 2009, the United
States Bankruptcy Court for the District of Rhode Island adopted a
Loss Mitigation Program,
effective November 1, 2009, to 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.
