Definition
Default resolution is a focus of post-purchase housing counselors who help homeowners cure a mortgage delinquency.
Analysis
Default resolution counseling can include proactive counseling sessions that encourage homeowners to restructure their budgets or make other changes to consumer behavior to keep their mortgages in good standing. Often the goal of proactive counseling sessions is to find informal solutions to help a homeowner catch up on delinquent mortgage payments on their own.
Default resolution counseling may also include a loss mitigation program. Loss mitigation may be needed by a homeowner with serious delinquency who may be threatened with foreclosure.
