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:
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.