Foreclosure mediation is mediation service to help you to determine your options. They do this before, or during, the foreclosure process. Through the mediation, a lender may be able to collect back payments and the homeowner may keep their home. Sometimes, the homeowner might be able to negotiate a more realistic mortgage payment. This will prevent them from defaulting again in the future.
Function
Foreclosure mediation refers to the process by which a lender attempts to renegotiate the terms of a homeowner’s mortgage. We do this to bring the mortgage current and prevent the homeowner from frequent default. A third party aids this process.This can be an unbiased person or a mediator. The third party can work with both sides to come to a reasonable agreement that works for both parties.
Alternative Law’s Foreclosure mediation program serves clients in any state with two willing participants. Our forclosure mediators usually work on cases where the disputes are larger and more complex. For simple forclosure proceedings, it is best to utilize a state-run mediation program.
There are more and more state – or government-run services, but not all states offer foreclosure mediation. Currently, only a few states offer it. States that have adapted the real estate mediation process to apply to their state’s foreclosure laws. Connecticut, Ohio, Florida and New Jersey are some states to create foreclosure mediation programs.
Foreclosure Mediation Types
Foreclosure mediation sometimes serves as a form of debt relief. However, a foreclosure mediation program is not the same thing as a debt-relief service. A debt-relief service is usually provided directly by your lender’s company or by a neutral agency. They charges fees for communicating with your creditors on your behalf. Government-sanctioned foreclosure mediation programs usually do not charge a fee for smaller mediations. They are provided by the courts.
If your property faces foreclosure, you typically must respond to your lender’s notice within 28 days. This is how works in most states. You should inform your lender that you have received the notice and that you would like to request a mediation. After you receive the notice, you should contact Alternative Law. Your lender may already have your states contacts that are necessary to begin this process. However, they may not want to utilize an outside neutral such as us. You might need to negotiate that conflicting point with them to achieve a fair result.
Are you in need of a foreclosure mediator? You can begin the process by contacting Alternative Law Foreclosure Mediation at 1.800.529.1516 or emailing us at mediation@alternativelaw.com.
You can also use your lawyer or a HUD (Housing and Urban Development) approved counselor. They advise you of the proper steps. In addition, they advise you on specific laws in your state. Note again, that only a few states have foreclosure mediation programs set. You may not live in one of these states. If not, your local HUD-approved counselors may still be able to provide you a few other options.
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