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Does Foreclosure Mediation Work?

Receiving a notice of foreclosure can make your heart beat just a little faster, and cause you a significant amount of anxiety. After all, the possibility of losing your home means you and your family will be left looking for a new place to live. Moving is never fun, and it can take time and money that you may not have if you are in dire financial straits. There is some thought that working with the lender may prolong the case, giving you the time you need to find alternate housing that meets your needs, but not every lender is generous enough to give their customers this time. Another alternative that gained quite a bit of popularity a few years ago is that of foreclosure mediation. But, what does it require and does it really work?

Any mediation is a form of dispute resolution that takes place outside of the four walls of the Courthouse. Countless homeowners have tried to work with their mortgage lender by having a neutral third party (mediator) listen to their dispute and come up with a workable solution. Unfortunately, not many homeowners have been successful when using this forum. An article on the issue states that the idea of mediating a foreclosure case simply does not end with the good results for the borrower. Here are some reasons why:

  • Home values have decreased so drastically that the amount owed on most homes is far more than what the homes are worth. This means the lender cannot resell the property without taking a loss. It would seem logical that given these figures more lenders would be willing to work with their borrowers, but that has not been the case.
  • Much of the information needed to review the value of a home for purposes of modifications or short sales are being withheld from borrowers. This makes it hard to come to the mediation table with any kind of meaningful offer of resolution.

Because these programs have failed to help homeowners, other avenues of dispute resolution must be used. If you are facing foreclosure, you do have defenses. One thing you should do right away is to ask the lender for the note, because if the lender does not hold the note then they do not have the right to foreclose. Considering bankruptcy is also an option that works for many. When you are able to eliminate unsecured credit card debt, more of your monthly disposable income is available. In many instances the amount of money freed up from not having to make large credit card or other unsecured loan payments is enough to cover what is due on the home. Call us for information about how to save your home today.

 

For more information about foreclosures, contact us at  www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.

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