Frequently Asked Questions About Foreclosure Mediation

What is foreclosure mediation?

In mediation, a neutral third party (mediator) helps the homeowner and lender reach a fair, voluntary, negotiated agreement. The mediator does not decide who is right or wrong.

Is there a fee to participate in the Mortgage Foreclosure Mediation Program?

The lender or loan servicing agent pays the required fee at the time the foreclosure action is filed. There is no fee required of the borrower to enter the program. However, if mediation does not settle the case, all or part of the managed mediation fee may be assessed against the borrower if the case proceeds to a final hearing before a judge.

Why should I bother to mediate my mortgage problem?

Many difficulties with mortgages, either before suit is filed (such as when an ARM reset is approaching or when a homeowner is slightly behind in payments) or while a foreclosure case is pending, can be resolved through reasonable discussions. An experienced mediator can help the parties find a creative solution. Because mortgage lenders don’t want to own houses, they are generally willing to talk with a borrower about reasonable, practical solutions to bring the mortgage current. Mediation, with the chance to talk privately with the mediator, has a better opportunity to reach a solution than a possibly tense or difficult one-on-one negotiation.

Who are the mediators?

The independent foreclosure mediators are Supreme Court-certified, trained in mediation and foreclosure law.

Will the mediator issue a decision in my case?

No. All the mediator can do is help the parties look at the dispute more objectively, discuss options for a workout of the mortgage, listen to each side privately, and help the participants find a solution. A mediator makes no decision, judgment or recommendation on the outcome of the mortgage dispute.

Do I need a lawyer to participate in the Mortgage Foreclosure Mediation Program?

No, you do not have to be represented by an attorney.

Do all borrowers who signed the mortgage need to attend the mediation session?

Yes, all borrowers must be present at the mediation session. For example, if a husband and wife signed the mortgage then both will need to be present for the mediation. If one party cannot attend, the borrower that is attending should bring a completed Power of Attorney form.

Is the mediation confidential?

Yes, any discussions in the mediation session are confidential.

What do I bring to the mediation session?

• Completed Financial Disclosure Form
• Credit Report
• Previous Year’s Tax Returns
• Proof of Income
• Most Recent Bank Statement
• Current Utility Bill(s) for Property in Foreclosure
• Any other information that may be helpful.

What happens if we can’t settle?

If the parties cannot settle at the mediation, the parties may agree to negotiate further or the case will be returned to court.

What happens if I do not attend the mediation appointment?

If the borrower does not appear at the scheduled mediation appointment, the case is returned to the circuit court and foreclosure proceedings can continue.