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Loan Modification Management Program

The United States Congress created procedures to follow when parties seek to mitigate losses when a real estate loan is in distress, namely 12 CFR 1024 (Regulation X, Loss Mitigation Procedures).  While in bankruptcy court, it can be difficult for the parties to invoke and comply with these statutory requirements in conjunction with relevant provisions of the Bankruptcy Code (“Code”) and Federal Rules of Bankruptcy Procedure (“FRBP”).  

In 2017, U.S. Bankruptcy Court, Central District of California (USBC-CD) created a pilot program to meet this challenge.  In 2023, the Board of Judges voted to make this program permanent.  The title of this program is the Loan Modification Management Program (“LMM”) as implemented in the Central District of California within regulations referred to above, and within our Local Bankruptcy Rules (“LBR”).  

The LMM is managed by a vendor approved by the USBC-CD and is a forum for debtors and creditors to reach a consensual resolution – or loss mitigation -- when a debtor’s Eligible Property is at risk of foreclosure related to a creditor’s Eligible Loan.  Loss mitigation means the full range of solutions that may prevent either the loss of a Debtor’s Eligible Property to foreclosure, increased costs to the Creditor, or both, including but not limited to loan modification, loan refinance, forbearance, short sale, or surrender of the Eligible Property in full satisfaction of obligations arising under an Eligible Loan.  The goal of the LMM is to facilitate communication and exchange of information in a confidential setting and encourage the parties to finalize a feasible and beneficial agreement under Court supervision.   Participants in the LMM must comply with LMM Procedures and LMM Forms that are posted in section 3-10 of The Central Guide and at related links on the court’s website.

Los Angeles Division
Honorable Sheri Bluebond
Honorable Julia W. Brand
Honorable Neil W. Bason
Honorable Deborah J. Saltzman
Honorable Vincent P. Zurzolo

San Fernando Valley Division
Honorable Martin R. Barash
Honorable Victoria S. Kaufman
Honorable Maureen A. Tighe
Honorable Deborah J. Saltzman

Riverside Division
Honorable Scott H. Yun
Honorable Magdalena Reyes Bordeaux

Northern Division
Honorable Martin R. Barash
Honorable Deborah J. Saltzman

Santa Ana Division
Honorable Mark D. Houle

You may only use the LMM forms and the Loan Modification Management Program Procedures if your case or your client’s case is assigned to one of the judges listed above.