There is a foreclosure crisis happening in this country right now. If you are a homeowner trying to avoid foreclosure, you may benefit from talking to a qualified bankruptcy attorney. Many states and the District of Columbia have implemented new foreclosure mediation programs designed to help homeowners save their residences.
What Is Foreclosure Mediation?
Many of you are probably reading this thinking, “That sounds great! What is foreclosure mediation?”
Foreclosure mediation is essentially a meeting between you, the creditors that own the home loan, and the mediator. In this meeting, you and the other party will try to work out a deal that allows you to avoid foreclosure altogether
Common solutions reached in the mediation process include:
- Loan modification
- Custom payment plans
- Short sale
- Forbearance agreements
Even if you surrender the property, you can at least avoid the long, grueling foreclosure process.
How Can I Qualify?
Now, if you’re still reading, you’re saying, “Wow! How can I qualify for foreclosure mediation?”
D.C. started the program in 2010 to help families save their homes. In order to take advantage, you have to meet the following eligibility requirements:
- The home is your primary residence
- The home is a single-family home, condo, or duplex
- There are four or fewer people living in the home
- You have received a Notice of Default on Residential Mortgage (NOD)
How Do I Opt In?
“Amazing! I’m eligible! How can I opt in for foreclosure mediation?” you must be asking now.
When you receive your NOD, you should also receive a mediation election form. On it you will find contact info for your creditor, a loss mitigation application, and a pre-addressed envelope so you can easily send in documentation to the mediation administrator should you decide to opt in.
Submit the envelope within 30 days with the following items included:
- Completed mediation election form
- Loss mitigation application
- $50 nonrefundable administrative fee
The mediation process should happen no later than 45 days after the NOD was mailed and be concluded within 90 days, unless all parties agree to a 30-day extension.