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. 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 negotiating with lenders to take advantage of programs which the banks may offer. If a borrower reached the point of judicial conferences regarding their property, foreclosure mitigation will allow legal representation in the court room to assist on working out terms for the homeowner.
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