Qualification/Requirements for Loss Mitigation? (rate, loan, bank, upside)

[acegolfer]

Does anybody know the requirements for loss mitigation?

It seems that my seller, who is a medical surgeon with job, have applied for mitigation after she sold her home to us. It turns out the house is upside down.

I doubt she will be qualified and did some research but couldn't find any infor. Do you think she will be qualified?

[ajpacino]

you will have to be 60 days late and show means of repayment, Loss mitigation has several different methods of helping, The most common is a cap adjustment, this is a restructure of the mtg. with a managable rate and the delequent payments rolled into the loan, the 2nd is a short sale and this is like a repo where the bank sales the home for much lower than you owe "current market value". and it used to be you were taxed on the difference, but old bush gave you a small window so this wont happen