Loss Mitigation Program — Western District of Pennsylvania
Pittsburgh Loss Mitigation Program Attorney
The U.S. Bankruptcy Court for the Western District of Pennsylvania has a formal Loss Mitigation Program that gives homeowners in bankruptcy a structured, court-supervised path to negotiate a mortgage modification. Foster Law Offices guides Pittsburgh-area clients through every step.
Foster Law Offices, LLC represents homeowners in the U.S. Bankruptcy Court for the Western District of Pennsylvania's Loss Mitigation Program — a court-supervised process established in 2012 that requires lenders and debtors to negotiate in good faith toward a mortgage modification. Attorney Daniel P. Foster handles the filing, portal communications, status conferences, and court approvals so you can focus on keeping your home.
What Is the Western District of Pennsylvania Loss Mitigation Program?
The Loss Mitigation Program was established on October 1, 2012 by General Order #2012-7 and is now codified in W.PA.LBR 9020-1 et seq. It is a formal program of the U.S. Bankruptcy Court for the Western District of Pennsylvania that creates a structured, court-supervised framework for debtors to negotiate mortgage modifications with their lenders — with the court actively overseeing the process to ensure both sides participate in good faith.
Unlike pursuing a modification on your own outside of bankruptcy, the Loss Mitigation Program puts the court's authority behind the process. Lenders are required to respond, communicate through the court-approved portal, and act within specified timeframes — or face consequences. This gives Pittsburgh homeowners in bankruptcy a meaningful advantage when negotiating with their mortgage servicer.
How the WDPA Loss Mitigation Program Works
The Loss Mitigation Program follows a defined procedural path governed by the court's local rules. Here is what the process looks like from start to finish.
Eligibility Review
Before filing, the attorney will conduct a thorough eligibility review — evaluating your income, debt-to-income ratio, and financial situation. This is often done at the initial consultation meeting.
Filing the Notice of Request for Loss Mitigation
If you qualify, your attorney files a Notice of Request for Loss Mitigation using Local Form 39 (Chapter 13).
Loss Mitigation Program Order Entered — DMM Portal Opens
The Motion will either be approved or denied. If approved, once the court enters the Loss Mitigation Program Order, all communications between the debtor (or in this case, their counsel) and lender must take place exclusively through the DMM Portal (Default Mitigation Management). No direct contact with the servicer is permitted outside the portal. The portal creates a documented record of all negotiations.
Document Submission Through the DMM Portal
Your attorney uploads all required financial documents through the DMM Portal. The servicer reviews the submission and may request additional documents. Timely and complete document submission is critical — delays on either side are tracked by the court.
Status Conferences Before the Court
The court holds Loss Mitigation Program status conferences as needed. Your attorney appears at these conferences to report on the status of negotiations. If the Loss Mitigation Program Order is about to expire and negotiations are still ongoing, a Motion for Extension must be filed before expiration — extensions are not automatic.
Trial Modification Through Final Court Approval
If the lender approves a trial modification, an Interim Trial Mortgage Modification Order is filed with the court. Upon successful completion of the trial, the parties seek final court approval of the permanent modification, which closes the Loss Mitigation Program.
The DMM Portal: All Communications Go Through the Court System
Once the Loss Mitigation Program Order is entered, all communication goes through a special portal. This is not optional — direct contact with the servicer outside the portal is prohibited. The portal creates a complete, timestamped record of all document submissions, servicer responses, and negotiation activity that the court can review at any status conference.
Visit the WDPA Bankruptcy Court Loss Mitigation Program Page
Loss Mitigation Program Within a Chapter 13 Bankruptcy
In the Western District of Pennsylvania, the Loss Mitigation Program is pursued within a Chapter 13 case. The automatic stay protects the home from foreclosure while negotiations proceed. Trial modification payments are made through the Chapter 13 Trustee, and the Chapter 13 plan must be updated to reflect any trial or permanent modification. Attorney Foster coordinates the Loss Mitigation Program process with the Chapter 13 plan to ensure both proceed correctly.
Facing Foreclosure? The Loss Mitigation Program May Be Your Path Forward.
Attorney Daniel P. Foster has guided Pittsburgh-area homeowners through the Western District of Pennsylvania's Loss Mitigation Program. Call today for a free consultation to find out if you qualify.