What is a foreclosure mediation program?

A foreclosure mediation program is a legal process designed to help homeowners and lenders resolve disputes over mortgage payments. It is an alternative to going to court to resolve the dispute. In Wisconsin, the Department of Financial Institutions (DFI) administers foreclosure mediation programs. The program is designed to help homeowners and lenders reach an agreement that is in the best interests of both parties. The foreclosure mediation process begins when a homeowner is unable to make their mortgage payments and a lender files a foreclosure suit. The DFI then sends a notice to the homeowner, explaining their rights and offering the option of a foreclosure mediation. The homeowner has 30 days to accept or reject the mediation offer. If accepted, a mediator (a neutral third party) will assist the homeowner and lender in negotiating an agreement. The mediator helps the parties discuss their needs and interests and work to reach a resolution that is beneficial to both parties. The mediator has no authority to determine the outcome, but instead facilitates the process and offers different transformative techniques to help the parties reach an agreement. The agreements reached in mediation are binding, and the lender agrees not to pursue any other legal action against the homeowner. If the foreclosure mediation is unsuccessful, the case will continue to be processed in court. It is important to note that homeowners may be eligible for other forms of assistance through state and federal mortgage assistance programs.

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What is a foreclosure mediation program?

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