Inception

• Though some foreclosure mitigation programs existed already, the majority of current programs came into being as a result of the housing crisis in 2007. The sudden explosion of the number of homes in and nearing foreclosure directly led to drastic falls in the value of real estate and the number of construction jobs. This situation played a major role in the greater economic downturn that affected the global economy. The U.S. government, along with some state governments, responded by creating foreclosure mitigation programs.
  
  

Methods

• The primary method of foreclosure mitigation is to help homeowners figure out a viable way by which they can continue to make payments on their mortgage in their current financial situation. This may mean laying out a careful budget or finding unnecessary expenses that can be cut. When simple budgetary solutions prove unsuccessful, foreclosure mitigation specialists can help by informing borrowers of programs, such as the Homeowners' Emergency Mortgage Assistance Program (HEMAP) in Pennsylvania. Such programs loan government money to borrowers to bring their mortgage payments up to date and continue to help them make monthly payments. For example, HEMAP makes loan payments up to a maximum of 24 months or $60,000, whichever comes first.
  
  

Purpose

• The purpose of loan mitigation is not to simply find a way of letting homeowners keep their homes without making payments. Rather, its purpose is to help them remain contributing members of society who do everything they can to meet their financial obligations. Helping individuals to get into a financially sound position and keep the homes in which they live helps the economy, as a whole, since general financial stability is good for every buyer and seller in the market.
  
  

Getting Help

• If you are currently in foreclosure or if you are in fear of being in that situation soon, foreclosure mitigation may be something that can help you. At no cost, professional counselors throughout the nation can give you direction on what to do to minimize the risk of losing your home. For help, go to the website of a foreclosure mitigation foundation, such as NeighborWorks America. This organization has a network of local non-profits that offer counseling to homeowners. The counselor can walk you through the foreclosure mitigation process. If you can benefit from a mortgage modification, the counselor can facilitate the necessary communication with your mortgage holder.