What is a foreclosure mediation program?

A foreclosure mediation program is a program that is offered in some states, including Arizona, to help homeowners and lenders come to an agreement to avoid foreclosure. Foreclosure mediation gives homeowners the opportunity to work with the lender to create a repayment plan that would work for both parties. This is done through a mediator, who is a neutral third party. They help the homeowner and the lender discuss their options, and come to an agreement. A mediator might present the homeowner with possible repayment options, such as the option to pay a lesser amount than the original loan balance, and the lender might agree to forgive some of the debt. The goal of foreclosure mediation is to help the homeowner and lender come to an agreement that keeps the homeowner in their home. It is also beneficial because it can help the homeowner avoid foreclosure, high legal costs, and damage to their credit score. Foreclosure mediation can be offered to homeowners by a lender, or by a government agency, such as the Arizona Department of Housing.

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