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The FDP provides mediation in foreclosure cases at the request of a house owner who lives in the residential or commercial property being foreclosed, and the residential or commercial property is their primary home. (Vacation residential or commercial properties, second homes, and commercial residential or commercial properties do not certify for mediation.) Mediation in a foreclosure case consists of the homeowner, the lender, lawyers on the case, and a neutral mediator. The mediator assists the celebrations speak about how they might settle their case. In mediation, the celebrations choose the outcome of the case.

On this page:

of mediation in a foreclosure How to request mediation The Informational Session Mediation Homeowner preparation for mediation If you are not able to attend your arranged informative session After mediation Contact

Benefits of mediation in a foreclosure

Parties have an opportunity to talk with each other in an informal setting with the help of an arbitrator. Both sides share an interest in keeping the property owner in the home and paying the mortgage.

A long-lasting benefit of mediation is enhanced interaction in between the celebrations. Mediation offers the property owner and lending institution the opportunity to talk about how to meet their shared objectives. The mediator can help focus the discussion and raise alternatives the celebrations might not have actually considered or understood about.

Since the foreclosure mediation program began in 2010, roughly 60% of cases mediated have actually been dismissed (ended without a foreclosure).

How to ask for mediation

Please do not ignore the court papers. Complete and return the Response to Complaint and Ask for Mediation form consisted of with the foreclosure court documents or send out a written request to the clerk's workplace where your case is being dealt with. Request mediation within 20 days of receiving the court papers. Even if you miss this deadline, it deserves sending the court a demand in composing if you believe mediation might help because you may still have the ability to get involved.

The Informational Session

Before a case can be set up for mediation, the property owner needs to attend an Informational Session. If you ask for mediation in writing by the due date, the notary will schedule you to attend an Informative Session with other property owners. You will get a notice in the mail to let you understand when and how to come to the Informational Session. It will happen either at a court house or on Zoom. Lenders may participate in, however are not needed to participate in, due to the fact that this session supplies info and assist geared to homeowners in foreclosure.

Court personnel will welcome you, and you will gain from a judge about the general process in a foreclosure case. A HUD-certified housing counselor will discuss how to deal with your loan provider. These presentations might be by video. After you have been to an Educational Session, you will have your first mediation session.

Mediation

In mediation, you will have the opportunity to discuss your goals for the residential or commercial property, ask questions, and learn more about your options. The lending institution will supply information on the status of the loan. You and the loan provider will discuss how you may avoid foreclosure and what files will need to be sent.

The arbitrator will help you and your lending institution come up with a particular plan to deal with the case, if possible. The arbitrator does not take sides or decide how the case should be solved. At the end of each mediation session, the mediator writes a clear report on concurred next actions and due dates. Discover more about mediation.

Mediator's Report

For each mediation session, the arbitrator composes an Arbitrator's Report. The conciliator will review the report with you to make sure it is clear and that you agree with what it says. If you do not understand or agree with any part of the report, make sure to ask questions and ask the mediator to make changes before you sign the report. After you and the other celebration sign the Mediator's Report, the arbitrator will send it to the court for your file and you will get a copy of it.

Follow-up Mediation

If another mediation session is needed, the Mediator's Report will say that, and the court will arrange a follow-up mediation session.

Homeowner preparation for mediation

Before the Informational Session and mediation, consider your objectives for the residential or commercial property. Do you wish to remain in the home or leave? What is the market worth of the residential or commercial property? How much do you owe?

Some alternatives to foreclosure that you might wish to explore in mediation include:

- Permanent "loan modification;"

• Temporary or short-term "forbearance arrangement and repayment plan;"
• Giving the lender a "deed in lieu of foreclosure;" or
• Having the lender approve a "short sale" of the home.
  
  See Terms that might turn up in your mediation for meanings of these and other terms.
  
  Before accepting any particular approach, talk with a HUD-certified housing therapist. This is a free service to help you evaluate your monetary situation. The housing counselor will use specific recommendations on what options you may need to prevent foreclosure. A housing counselor will be present at your Informational Session, however you may wish to call a counselor before the Informational Session. Find HUD-approved Housing Counseling Resources in Maine.
  
  You may also wish to talk with a legal representative with experience in property foreclosure law. A legal representative can provide info on the legal process specific to your scenario, help determine legal defenses you may have in the court case, and assist you weigh alternatives.
  
  You do not need a legal representative to go to mediation, but if you are represented by an attorney, your attorney must go to mediation. See Get Legal Help for alternatives for talking with an attorney.
  
  You are not required to bring documents to the first mediation session, however you might desire to begin gathering some of the following to get ready to work with your housing counselor or lawyer:
  
  - Any correspondence from the lender or mortgage servicer or its legal representative, even if the correspondence is unopened;
• Court papers (foreclosure grievance, copy of your response, etc);.
• Recent pay stubs or other income source;.
• Last 2 months' bank declarations; and.
• Last year's income tax return.
  
  If you are not able to attend your set up informational session
  
  If you can not attend an Information Session by the deadline in the notification, you must ask the court to set a new deadline (to "continue" your court event). Your demand needs to remain in composing and be gotten before the deadline.
  
  If you can not attend a mediation on the date arranged, you must ask the court for a brand-new date by a "motion to continue" your mediation session. Again, your demand must be in writing and sent to the clerk and the other celebrations.
  
  Send your request to the court (with a copy to the loan provider) as quickly as you can. See Motion to Continue Mediation in Foreclosure Action (FDP-004). Do not presume the court will approve your request. If you do not speak with the court that the motion to continue has actually been granted, you should participate in the court occasion as arranged.
  
  After mediation
  
  Following each mediation session, the conciliator sends an Arbitrator's Report to the court, describing plans and contracts made in mediation. If parties make an arrangement to settle the case in mediation, the Mediator's Report explains the steps to close the case. When all the actions are finished and your case is settled, one or both celebrations need to notify the court in composing. The case will then be over.
  
  If you are not able to reach a final agreement in mediation however desire to continue to work towards a possible option to foreclosure with the lender, you might ask the court to "stay" the case (stop briefly the case) for a period of time. If you and the lender settle on this, both of you will send a Joint Motion to Stay Foreclosure Action Following Mediation (FDP-10).
  
  If you are not able to reach an arrangement in mediation and have no immediate strategy to keep interacting with the lending institution, the case is generally "returned to the docket" (return on the court's schedule) and moves forward. However, you and the loan provider can attempt to settle the case at any point while doing so, even up to and at trial. See Foreclosure Step by Step to learn more on the foreclosure court procedure.