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

A foreclosure mediation process is a way for borrowers and lenders to come to an agreement about how to resolve an outstanding mortgage. In New York, the process is intended to give people facing foreclosure an opportunity to save their homes. The process typically begins when the borrower receives a notice from their lender stating that they will begin the foreclosure process. The borrower then contacts the lender to attempt to negotiate a settlement. If the two parties can’t come to an agreement, they may be required to attend a mediation session. During this session, an impartial mediator will assist them in reaching a satisfactory resolution. The mediation process allows the borrower and lender to negotiate on the terms of a new loan agreement. The mediator can help facilitate communication and provide legal advice. The borrower is encouraged to bring documentation of their financial situation so that the mediator can suggest possible options. It is important to note that the mediator cannot make a decision for either party. Foreclosure mediation can be beneficial for those facing foreclosure as it allows them to make a plan to attempt to save their home. Negotiating with the lender can result in a longer period to pay the loan, or a reduction in the amount owed. It also offers an opportunity for the homeowner to receive help in understanding their options and the legal implications of each.

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

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