IT'S IMPORTANT TO KNOW,..YOU CAN DO LOSS MITIGATION BY YOURSELF! You must FIRST obtain an exact list of required documents for Loss Mitigation options to be reviewed. Though there may be a common list among servicers,..it is the securitizing company [whether that is Fannie Mae, Freddie Mac, Government agencies or the infant entrants to the fray - Private Equity Companies {God help us} ] YOU MUST know their required documents. There is a $8/hour call center workers checking off the documents required before YOUR FILE is sent to a negotiator. NOTE: If you are missing ONE DOCUMENT or any document exactly as prescribed,..YOUR FILE will sit at the top of a 6 FOOT stack of files AND NEVER RECEIVE A CALL to fix or complete.


Here are some changes to legislation you should know:


Single point of contact – the servicer must provide one person for the borrower to communicate with. The servicer must also provide that person’s contact information to the borrower in writing.
FHA Waterfall. Every FHA borrower must go through this process. This includes situations where you have the property listed and submit an offer. They will be considered for the following in this order: forbearance, loan modification, then a short sale.  Before the short sale is allowed the borrower must be evaluated for the forbearance and a loan modification. If they qualify for either, they must decline in writing, in order to move to the short sale option.
Restricted Dual Tracking - this is when the servicer moves forward with a foreclosure while continuing to work with the borrower to avoid foreclosure. This is strictly prohibited now. The servicer cannot file for initial foreclosure proceedings until the loan is 120 days delinquent. Servicers cannot file for a notice of foreclosure, if a loss mitigation application is pending.
Early Notice When in Trouble – after a borrower misses two consecutive payments the servicer must include in their monthly statement; the date in which the borrower became delinquent, the amount to bring the loan current and the risks of failing to do so. 
Notification of Foreclosure Alternatives – within 15 days of a borrowers second missed payment the servicer must provide in written notice the options available to them to avoid foreclosure.  
Direct and Ongoing Access to Service or Personnel – servicers must provide ongoing and easy access to servicer personnel. This in most cases refers to your single point of contact.
One Application – servicers will not be able to require multiple applications for loan modifications. They must offer a single application for all different types of loan modifications the borrower may be approved for. Once you submit an application with all the supporting documentation, they must inform you of all modification programs that are available to you.
Confirm Application And Prompt Review – this applies for both the loan modification process as well as the short sale process in regards to submitting a short sale offer. Servicers must inform a borrower WITHIN 5 DAYS whether or not the application is complete, as well as, if there are missing documents, and they must specify what documents are missing. This is as long as the application is received 37 days before a foreclosure sale. The servicers must respond within 30 days to any complete loan modification application, or short sale application, and let the borrower know if it has been approved. The exception to this is, if you submit either application within 37 days of a foreclosure sale date. At this point it is then at the servicers discretion if they want to postpone or move forward with the foreclosure sale. It is strongly recommended if you fall within the 37 days to request an extension. Depending upon each individual situation, extensions are granted.
Fair Review Process – servicers must provide a fair review process to borrowers seeking an alternative to foreclosure. In the event that the loan is an investor loan, the servicer must provide the borrower with all alternatives provided by the investor to avoid foreclosure. Servicers cannot steer borrowers to any type of loan modification that is more beneficial to either the servicer or the investor.
No Foreclosure Sale until All Other Alternatives Are Considered - This is providing that the borrower has submitted a complete loan modification package, or short sale package, prior to 37 days before a foreclosure sale date.
No Foreclosure Sale with a Loss Mitigation Agreement – if the borrower has an approved loss mitigation agreement no foreclosure sale can continue. The exception to this would be if the borrower fails to comply with the modification agreement. If you find yourself in either of these situations and previously a foreclosure sale date has been set, it is important to follow through and make sure that the foreclosure has been canceled. In some cases the servicers fail to communicate with trustees and foreclosure sales have continued.
Borrower Recourse – servicers must explain why they have rejected a borrower’s application for modification or short sale. Specifically the servicer cannot merely site as they have in the past “investor guidelines” as a reason for justification. They must provide specifics.