Loss Mitigation Program
IMPORTANT NOTICE TO THE BAR AND PUBLIC
CONCERNING SECOND AMENDED GENERAL ORDER ADOPTING
LOSS MITIGATION PROGRAM AND PROCEDURES
AND REVISED LOCAL FORMS
Please be advised that pursuant to a Second Amended General Order Adopting Loss Mitigation Program and Procedures (LMP) Pending Adoption of Local Rule dated September 19, 2013, the Board of Judges of the United States Bankruptcy Court for the District of New Jersey has approved revisions of the LMP as follows:
Section V- Commencement of Loss Mitigation- Amendment limits the opportunity to utilize loss mitigation in Chapter 7 cases by requiring a Notice of Request for Loss Mitigation to be filed within 30 days of the commencement of the case, with no extensions permitted. Amendment also offers lenders the opportunity to opt out of the LMP after abandonment by the trustee.
Section VI - Loss Mitigation Order - Amendment deletes the time frames section as duplicative of the time frames set forth in Sections VIII and IX.
Section VII – Duties of the Loss Mitigation Parties - Amendment eliminates the Status Report requirement. Parties will continue to file the Local Form, Loss Mitigation Final Report within the time set by the Court in the Loss Mitigation Order. Requests for extension of the LMP may be set forth in writing and filed with the Court as prescribed by Section IX.B.
Section VIII - Loss Mitigation Process - Amendment reflects the mandate to use a Portal, the opt out available to attorneys where a hardship is shown, and the inapplicability of the provision to self-represented debtors. Amendment includes reference to document preparation software, not as a requirement, but as a potential tool for the parties to the LMP.
This Second Amended General Order supersedes the General Orders of the Court entered on August 1, 2011 and May 29, 2012.
For ease of reference, the following link may be accessed to review the Second Amended General Order and marked versions of the revised LMP and related local forms, Notice of Request for Loss Mitigation; Loss Mitigation Order; Application for Extension or Early Termination of Loss Mitigation Period; and Order Respecting Request for Extension or Early Termination of Loss Mitigation Period.
The revised LMP and related local forms are also available in the Clerk’s Office and on the Court’s website, www.njb.uscourts.gov.
Dated: November 12, 2013
James. J. Waldron, Clerk
Related documents (all have been revised effective 9/19/13):
LIVE access link: DMM Portal
Link to Loss Mitigation Document Preparation software: DocuMods
List of Mortgage Servicers using Portal: Servicers
Previous Notices to the Bar concerning Loss Mitigation
- IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING FIRST AMENDED GENERAL ORDER ADOPTING LOSS MITIGATION PROGRAM AND PROCEDURES AND NEW LOCAL FORM, LOSS MITIGATION FINAL REPORT EFFECTIVE IMMEDIATELY
Please be advised that pursuant to a First Amended General Order adopting Loss Mitigation Program and Procedures (LMP), dated May 29, 2012, the Board of Judges for the United States Bankruptcy Court for the District of New Jersey has approved revisions of the LMP at Sections VI. A.6 and VII.C.2 to require the filing of a new Local Form, Loss Mitigation, Final Report.
The Loss Mitigation Parties shall file the Local Form, Loss Mitigation Final Report within the time set by the Bankruptcy Court in the Loss Mitigation Order. The debtor shall be responsible for submitting the Loss Mitigation Final Report, but must do so on notice to and in cooperation with the creditor.
The Loss Mitigation Final Report must set forth the outcome of the loss mitigation process in the particular case, including, but not limited to the terms of any loss mitigation reached between the parties as identified in Section II of the LMP.
The form is available on the Court’s website.
Dated: May 29, 2012
James. J. Waldron, Clerk
- IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING LOSS MITIGATION PROGRAM AND PROCEDURES AND AVAILABILITY OF PORTAL
Please be advised that effective August 1, 2011, the Board of Bankruptcy Judges for the United States Bankruptcy Court for the District of New Jersey approved a General Order Adopting Loss Mitigation Program and Procedures (LMP), Pending Adoption of a Local Rule.
The Board has determined that a uniform, comprehensive, court-supervised loss mitigation program will facilitate consensual resolutions for individual debtors whose residential real property is at risk of loss to foreclosure. A loss mitigation program will avoid the need for various types of bankruptcy litigation, reduce costs to debtors and secured creditors, and enable debtors to reorganize or otherwise address their most significant debts and assets under the United States Bankruptcy Code.
Accordingly, the Court has initiated the Loss Mitigation Program and Procedures (“LMP”) identified below along with the use of related local forms. This package of LMP documents includes the following:
- General Order Adopting Loss Mitigation Program and Procedures
- Loss Mitigation Program and Procedures
- Notice of Request For Loss Mitigation – By the Debtor
- Notice of Request For Loss Mitigation – By the Creditor
- Loss Mitigation Order
- Loss Mitigation Status Report
- Interim Confirmation Order
- Order Extending or Terminating the LMP
DMM Portal – Implemented on Website and Effective Immediately
While the LMP provides a forum for debtors and lenders to discuss the debtor's options with respect to their residential property, structural issues often prevent debtors and lenders from communicating effectively. In an effort to resolve these communication issues, several lenders have made available a secure online portal that is designed to facilitate the communication and document exchange between debtor and lender (such portal is referred to as the "DMM Portal"). The DMM Portal also provides for the much needed transparency in the loss mitigation process by capturing all activity electronically and making the transactional history available to all stakeholders, including the Court.
Having implemented the DMM Portal, the court believes that the DMM Portal is a valuable tool, that a single point of contact would be advantageous in streamlining the loss mitigation process, and encourages participants in the LMP to use the Portal.
Accordingly, when a debtor's attorney files with the Court and serves on the Creditor and Creditor’s attorney, a loss mitigation request and such Creditor is a DMM Portal Lender (a list of which is maintained on the Court's website), debtor's attorney may use the DMM Portal to engage the DMM Portal Lender in the loss mitigation process by submitting the Loss Mitigation Order together with all of the DMM Portal Lender's required forms and documents through the DMM Portal. A complete list of all of the DMM Portal Lender's required forms and documents is available on the DMM Portal. Debtor's attorney will also continue to use the DMM Portal to communicate with the DMM Portal Lender to the extent possible regarding the loss mitigation request. Use of the DMM Portal will be free to debtors and their attorneys.
Free training on the DMM Portal is available to all debtors' attorneys. Debtors' attorneys should refer to the Court's website page on loss mitigation for DMM Portal training materials including a web portal attorney manual and contact information if webex training is desired.
Dated: December 12, 2011
James. J. Waldron, Clerk