Foreclosure Mediation
About Foreclosure Mediation
Foreclosure Mediation is an alternative dispute resolution
(ADR)
process
whereby the parties are assisted by a trained and skilled third party.
The Foreclosure mediator facilitates confidential communication,
reconciliation and
negotiation between the parties to reach a voluntary and mutually
agreeable resolution.
Foreclosure is becoming a major crisis with the economy still in
shambles, and home values decreasing. People are finding themselves in
owing more than their house is valued at, in addition with the
unemployment rates still rising, individual’s who could
normally afford the average home mortgage are struggling just to make
ends meat. As a part of foreclosure reform, foreclosure mediation laws
have been passed in several states to assist homeowners in avoiding
foreclosure of their homes.
Foreclosure Mediation is a process that enables homeowners who are
facing foreclosure to work out an amicable agreement to either postpone
foreclosure or avoid it entirely. Normally the lender will allow the
homeowner to catch up the back payments and make amends in order to
keep the house. It is important to understand that not all states
enable homeowners to seek foreclosure mediation as a rescue from
foreclosure. .
Foreclosure Mediation can do many things: .
•Allow the lender an homeowner ample time to
renegotiate the terms of the home loan.
•Bring a mortgage current in order for the
homeowners to keep from defaulting their home mortgage contract.
•The foreclosure mediator is the individual who
serves as a third party referee for both the bank and the homeowner.
•Can allow the parties to work out a deal that best
suits both of them.
Unfortunately, all states have not adapted foreclosure mediation laws.
However, there are other laws that can help homeowners that are in the
midst of foreclosure and losing their home. These states are Ohio,
Florida, Connecticut, and New Jersey. These states are the only ones as
of now that offer foreclosure mediation programs. If you live in one of
these states, and are facing foreclosure, it is important that you
check the resources and options available to you. It could mean the
difference in losing your home. .
Foreclosure Mediation is also thought of as a debt relief, however it
is entirely a different concept. Debt relief is supplied by a lender or
sought after by an organization or agency that charges fees to
negotiate on your behalf with all of your creditors. Mediation for
foreclosure is government sanctioned and is provided by the courts at
no fee or expense. .
In order to be eligible for foreclosure mediation in your state you
must adhere to many qualifications such as when the lender sends a
foreclosure notice their must be a response made within a
month’s period of time. Also all communication with the
lender has to be upheld and open. The lender must be informed of all
requests and response notices. Commonly lenders have resources to start
the mediation process for the troubled homeowners. If the resources are
not available then the county clerks office should be contacted for
information and guidance. .
If you are facing the miserable process of home foreclosure and would
like to see if you are eligible for foreclosure mediation to save you
your home, then you can contact an attorney through the HUD website or
local telephone directory. They will be able to advise you properly on
the governing factors and laws of foreclosure mediation in your
specific state of residence. Keep in mind of the scarcity of states
that participate in the mediation of foreclosure, and if this is the
scenario seek out your other alternatives.
LOCATE MEDIATOR DIRECTORY www.LocateMediator.com