A New York Loss-Mitigation Order is a court-ordered document that requires a creditor to accept a reduced payment from a debtor in order to avoid foreclosure. The order also prevents lenders from charging late fees or increasing interest rates on a loan. This type of order is commonly used by borrowers who are facing financial hardship and are unable to make their monthly payments in full. There are two types of New York Loss-Mitigation Order: Temporary Loss-Mitigation Orders and Permanent Loss-Mitigation Orders. Temporary Loss-Mitigation Orders are used when a borrower is unable to make payments for a short period of time. These orders typically last for no more than six months. Permanent Loss-Mitigation Orders are used when a borrower is unable to make payments for an extended period of time and need a more permanent solution. These orders can last for up to five years.