What is a foreclosure mediation program?

A foreclosure mediation program is a type of dispute resolution process that is available in some states, including California. The process is designed to bring the homeowner and the lender together to work out a mutually agreeable resolution in order to avoid or at least slow down the foreclosure process. It is an alternative to going to court, and it allows the homeowner to remain in the house during the process. During the foreclosure mediation program, the homeowner, lender, and mediator will meet to discuss the options and potential resolutions. The mediator has the authority to make recommendations but will not actually make a decision. Instead, the goal is to facilitate a discussion so the parties can come to an agreement. The lender may offer a loan modification or suggest a repayment plan that the homeowner can afford. The homeowner may be able to negotiate a short sale, deed-in-lieu of foreclosure, or other resolution. In California, the foreclosure mediation program is voluntary and each participant must agree to enter into the program. The mediator is a neutral third party who is experienced in dispute resolution and foreclosure law. The mediator’s job is to ensure an open, meaningful dialogue between the homeowner and lender to ensure that the homeowner’s rights are being respected. Foreclosure mediation programs offer a way for homeowners and lenders to find a resolution together. It can be a useful tool for avoiding foreclosure, and it can help the parties work out a plan that is agreeable and that works for both parties.

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What is a foreclosure mediation program?

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