What is a foreclosure mediation process and how can it help me?

Foreclosure mediation is a process in California where a homeowner facing foreclosure can work with their lender to come up with a payment agreement that avoids foreclosure. This mediation process is offered as an alternative to foreclosure, allowing the homeowner to keep their home. The process begins with a written request from the homeowner for a foreclosure mediation meeting with their lender. The lender must respond to the request within 30 days, and if accepted the lender will provide a written invitation for the homeowner to attend the mediation meeting. At the mediation meeting the homeowner can bring evidence, such as income records, to prove that they are able to pay back the debt. The lender will also present evidence to show that foreclosure is the best way to recoup the funds owed. During the mediation, the homeowner and lender will negotiate an agreement for payment of the debt. If successful, this agreement may reduce the amount owed or extend the timeline for repayment. It is important to note that both parties must agree to the terms of the agreement, or the mediation is ended and foreclosure proceedings will likely begin. Overall, the foreclosure mediation process can be a beneficial way for a homeowner facing foreclosure to avoid it. It allows the homeowner to negotiate terms and potentially keep their home if they are able to show that they can pay back the debt.

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What is a foreclosure mediation process and how can it help me?

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