Loss Mitigation Option

Loss Mitigation Option

HUD’s Loss Mitigation Options are intended to minimize economic impact to the Mutual Mortgage Insurance Fund (MMIF) and to avoid foreclosure, when possible. The Loss Mitigation Options are: • Repayment Plan; • Forbearance; • Partial Claim; • Loan Modification; • Combination Loan Modification and Partial Claim; • Payment Supplement; • Outside of the Waterfall Loan Modification (OWL); • Pre-Foreclosure Sale (PFS); and • Deed-in-Lieu (DIL) of Foreclosure. Low- to Moderate-Income household income does not exceed 115 percent of the median income for the area when adjusted for family size. Maintenance Income See Alimony, Child Support, and Maintenance Income.