Foreclosure occurs when a homeowner is unable to maintain payment on his or her full mortgage (principal and interest). The foreclosure process allows the lender to evict the owner, seize the property and use the home as collateral by re-selling it.
In 2011, the Foreclosure Fairness Program was born. This Program helps homeowners and lenders explore alternatives to foreclosure. Lenders must notify homeowners prior to initiating the foreclosure process of the option of foreclosure counseling, mediation, and participating in the mediation program.
If you are a homeowner and you have received a Notice of Default from your lender (usually a bank) and resided in your home when the foreclosure process began, you may be eligible for mediation. Foreclosure mediation is where a neutral party (the mediator) assists the homeowner and lender (aka beneficiary) in reasonably negotiating a voluntary and fair solution.
If you are interested in requesting mediation, it is important to note that homeowners themselves cannot self-refer to enter the foreclosure mediation process. Rather, the homeowner must be referred by an attorney or housing counselor. Once the matter is referred to the mediation process through the Department of Commerce, the borrower’s attorney and the lender’s representatives must engage in the process in good faith.
Are you facing foreclosure and losing your home? Contact Foreclosure Prevention Attorney Ada K. Wong of AKW Law, PLLC at email@example.com or (425) 954-3512.