Foreclosure Mediation Can Drastically Improve a Tough Financial Situation
One of the most gratifying things in life is buying a home. Whether you have bought one home and lived in it for decades, or have purchased and lived in multiple homes, this is an exciting and stressful experience wrapped into one. Homeownership is stressful because if you stop paying your mortgage, you can lose the home. That’s why so many people work two, three and four jobs at a time. They want to be homeowners and do not want to experience foreclosure. If you wind up in foreclosure, you might be able to navigate this difficult financial situation by entering into foreclosure mediation.
What is Foreclosure Mediation?
So, what exactly is foreclosure mediation? If you opt for this process, you will meet with the lender (bank) that holds your home’s mortgage. The two of you will hold a meeting with the help of a mediator. At the meeting, you will explore the options available to you as well as the options the lender is willing to allow you to use to save your home. These options include deed in lieu of foreclosure, short sale, modification, a repayment plan or something else you or the lender can agree to at the meeting.
Foreclosure Mediation Rules
The foreclosure mediation rules that banks must follow are different from state to state. Your lender must follow the rules set forth by the program in Massachusetts. The process starts when the lender initiates a foreclosure based on the program rules. A homeowner will receive the following when the process has been initiated:
- Notice of the foreclosure
- Notice about a mortgage foreclosure mediation program
- If enrollment is not automatic, information about how a homeowner can opt into the program
- Contact information for housing counselors who are approved by HUD
How Successful is Foreclosure Mediation?
There is no guarantee that foreclosure mediation will help you avoid the loss of your home to the lender. But, there’s no harm in trying. Studies have found that you are 1.7 times more likely to keep your home and avoid foreclosure if you utilize foreclosure mediation than if you decide against it. Every program is different and there are varying success rates.
Taking part in foreclosure mediation has its benefits, which include the following:
- Giving you more time to live in the home until the matter is resolved
- Providing you with a loss mitigation option that you did not know of previously
- Getting the bank to agree to a resolution that does not involve foreclosure
If mediation is not an option for your situation, you can still talk to your lender about the foreclosure notice and your options. It is possible that you could work towards a resolution without having your home foreclosed.
Headed Towards Foreclosure? Contact Shapiro Mediation Today
If you are headed towards foreclosure of your home, make sure you do not fight the issue alone. It is best to speak with an experienced mediator about the situation. Call the team from Shapiro Mediation at (339) 298-7733 or complete our online contact form today to schedule a consultation.