What is a foreclosure mediation program?

A foreclosure mediation program is a form of alternative dispute resolution which is used to help homeowners facing foreclosure in Texas. The program is designed to provide an opportunity for homeowners and lenders to reach an agreement outside of court, so that the homeowners can remain in their homes. The Texas Legislature created a mandatory foreclosure mediation program in 2009, which is overseen by the Office of Court Administration. Under the program, homeowners facing foreclosure can petition to participate in mediation. The lender, servicer, and homeowner then attend a mediation session, during which the mediator assists the parties in negotiating a resolution. The foreclosure mediation takes place in an informal setting, and the mediator is typically a neutral third-party. During the mediation session, the mediator will help the parties identify the issues involved in the foreclosure and suggest possible solutions. Some possible solutions may include loan modification, forbearance agreements, or payment plans. The Texas Foreclosure Mediation Program has been successful in helping homeowners remain in their homes. Since its inception in 2009, the program has helped thousands of families across the state avoid foreclosure. It is one of the most effective programs available to struggling homeowners in Texas.

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What is a foreclosure mediation program?

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