What is a foreclosure mediation program?

A foreclosure mediation program is designed to provide a mortgage borrower facing foreclosure with the expertise and resources to negotiate a settlement with their lender. The program, which is offered in Massachusetts, is an alternative to foreclosure. The program is voluntary and can provide the borrower—and the lender—with an opportunity to work out a loan modification, repayment plan, or other alternatives to foreclosure. The program includes a one-time mediation session, usually conducted through a neutral third-party mediator, in which the lender and borrower meet with one another to discuss and review a potential resolution. The mediator helps facilitate the conversation to encourage a discussion that is productive and beneficial to both parties. The main objective of a foreclosure mediation is to establish an agreement that benefits both parties and avoids foreclosure. The agreements may include loan modifications, principal reduction, or other agreements to keep the borrower in the home. If an agreement is reached, it will be officially filed with the court. For Massachusetts residents, a foreclosure mediation program provides a way for struggling borrowers to potentially resolve their financial troubles and avoid foreclosure. It is important to remember that while the program is free of charge, it does require that the borrower take the initiative to contact their lender, and it can take a considerable amount of time and effort to arrange a successful mediation session.

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What is a foreclosure mediation program?

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