Using Mediation foreclosure programs do they work?
Using Mediation foreclosure programs do they work
?
What is mediation? The presence of neutral third party mediators who can help parties reach an alternative to foreclosure for example this could be in the form of a loan modification, special forbearance, repayment plan or even selling of the home in the form of a short sale or deed in lieu.
Many states and courts have enacted laws where it is necessary to go through mediation before the lender actually forecloses on the property. This process will be very similar if you were to hire a foreclosure attorney, loan modification company or even calling the HOPE hotline. If you are seeking a loan modification to assist you in keeping your home and reducing your monthly mortgage payment going to mediation maybe beneficial. This third person will help you through the process and explain certain terms to you.
In Philadelphia they have a pre-mediation "conciliation conferences" where the parties are required to meet to discuss foreclosure alternatives. However, this meeting will only take place if the parties cannot come to an agreement on their own.
Having mediation programs also helps the courts by reducing the need to see every foreclosure case in court. The idea is to bring the lenders and homeowners together to resolve their issues and to come to an agreement that both parties are happy with. In some states Judges are still called upon during the mediation process; however this is not the case in all states. In some non judicial states like Nevada, the state requires lenders to participate in mediation before they actually foreclose on the property. Rhode Island will impose a fine on lender servicers that proceed to foreclosure without attempting mediation.
If you do not know if you are in a non judicial or a judicial state you can visit Realtytrac.com or read previous postings on our blog.