Foreclosures

What is Foreclosure Mediation

Foreclosure mediation is a process that is used to help homeowners avoid foreclosure by coming up with an alternate solution that benefits both the homeowners and the lender. Mediation consists of a meeting between:

  • the homeowners
  • their lender, and
  • an impartial third-party (the mediator).

At the meeting, the parties discuss the homeowners’ financial situation and try to negotiate a way for the homeowners to keep the home or give up the property without going through a foreclosure. By working together, the parties are often able to reach an agreement.

Potential outcomes of mediation include:

  • loan modification
  • repayment agreement
  • forbearance agreement
  • short sale
  • deed in lieu of foreclosure.