What is a loss mitigation affidavit?
A sworn statement required in Florida foreclosure cases certifying that the lender reviewed available loss mitigation options with the borrower before proceeding with judicial foreclosure.
Under Florida law, a mortgage lender filing a foreclosure action must submit a loss mitigation affidavit as part of the complaint. This document serves as the plaintiff's sworn certification that it reviewed loss mitigation alternatives with the borrower before pursuing court action. It is not optional, and courts will not accept a foreclosure complaint without it.
The affidavit must disclose several key items. It identifies the specific loss mitigation options that were considered, such as loan modification, forbearance agreement, or deed in lieu of foreclosure. It states whether the borrower was deemed eligible for any of these options and, if so, why the borrower did not accept them. If the borrower was ineligible, the affidavit explains the reason. The document also confirms the date the lender provided the borrower with notice of these options and the deadline by which the borrower could respond.
This requirement protects borrowers by ensuring lenders make a good-faith effort to resolve payment problems outside of court before resorting to foreclosure. For borrowers in the Jacksonville Metro area facing foreclosure, the presence and content of the loss mitigation affidavit can be a critical point of defense. An attorney handling foreclosure defense may challenge the adequacy of the lender's loss mitigation review, or may use it to negotiate loan modification terms before trial. The affidavit becomes part of the public court record and provides evidence of what options were actually discussed.