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Loss Mitigation
Loss Mitigation
Reduction in risk of home mortgage foreclosure. The Department's loss mitigation approaches generally fall into two broad categories -- (a) those which (if utilized successfully) would result in curing the default and retaining homeownership, and (b) those which would result in the relinquishment of homeownership, by means of a sale to a third party or by a voluntary conveyance of the property by deed in lieu of foreclosure. HUD Mortgagee Letter, Subject: FHA Loss Mitigation Procedures - Special Instructions dated November 12, 1996
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