"I know this effort will confirm what many economists have already concluded: principal reduction plans are the most helpful form of loss mitigation for homeowners and the most cost-effective for investors when compared to foreclosures," Ms. Harris wrote.
"Early intervention is absolutely the key," said Joseph Sakole, vice president of loss mitigation for Fannie Mae.
"You look at the Jose Canseco issue and say that it's a walkaway, but he is probably the only person on his block that did that," said Robert Padgett, director of loss mitigation for Freddie Mac.
She first tried a for-profit "loss mitigation" company, ultimately to no avail.
"Our biggest hurdle is reaching out and talking to people," said Margery A. Rotundo, Ocwen's senior vice president for residential loss mitigation.
Dr. Klaus Jacob, a senior research scientist at the Lamont-Doherty Earth Observatory of Columbia University and an executive committee member of the New York City Consortium for Earthquake Loss Mitigation, estimated that a magnitude 5 earthquake could cause about $5 billion of damage.
Under the banner of the New York City Area Consortium for Earthquake Loss Mitigation, engineers and scientists are studying building and soil conditions in an effort to pinpoint where the greatest risks may lie and ultimately to plan the seismic retrofitting of vitally needed structures like firehouses and hospitals.
Most existing houses already have features in place that will qualify them for wind loss mitigation certification.
Carrie Newhouse, a real estate agent who also works as a loss mitigation consultant for mortgage lenders in Minneapolis-St.
"You could say the customer is choosing not to make those payments," said Jack Schakett, credit loss mitigation executive for Bank of America Home Loans.
