The FDP offers mediation in foreclosure cases at the demand 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, 2nd homes, and business residential or commercial properties do not receive mediation.) Mediation in a foreclosure case consists of the property owner, the lending institution, attorneys on the case, and a neutral conciliator. The mediator assists the parties talk about how they might settle their case. In mediation, the parties decide the result of the case.

On this page:

Benefits of mediation in a foreclosure
How to ask for mediation
The Informational Session
Mediation
Homeowner preparation for mediation
If you are unable to attend your arranged informational session
After mediation
Contact

Benefits of mediation in a foreclosure

Parties have a chance to talk with each other in a casual setting with the assistance of a conciliator. Both sides share an interest in keeping the house owner in the home and paying the mortgage.

A long-term advantage of mediation is enhanced interaction between the celebrations. Mediation gives the homeowner and lender the chance to speak about how to satisfy their shared goals. The conciliator can assist focus the conversation and raise options the parties may not have thought of or known about.

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

How to request mediation

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

The Informational Session

Before a case can be scheduled for mediation, the homeowner must participate in an Informative Session. If you request mediation in composing by the due date, the court clerk will arrange you to participate in an Informational Session with other property owners. You will get a notification in the mail to let you know when and how to come to the Informational Session. It will occur either at a court house or on Zoom. Lenders might participate in, but are not required to participate in, since this session offers information and assist tailored to house owners in foreclosure.

Court personnel will welcome you, and you will gain from a judge about the basic procedure in a foreclosure case. A HUD-certified housing therapist will discuss how to deal with your lender. These discussions may be by video. After you have been to an Educational Session, you will have your very first mediation session.

Mediation

In mediation, you will have the chance to discuss your objectives for the residential or commercial property, ask concerns, and learn about your alternatives. The lender will supply information on the status of the loan. You and the loan provider will go over how you may prevent foreclosure and what files will require to be sent.

The mediator will help you and your lender develop a particular plan to fix the case, if possible. The mediator does not take sides or choose how the case should be resolved. At the end of each mediation session, the conciliator composes a clear report on concurred next steps and deadlines. Learn more about mediation.

Mediator's Report

For every single mediation session, the arbitrator composes an Arbitrator's Report. The conciliator will evaluate the report with you to make certain it is clear and that you concur with what it says. If you do not comprehend or agree with any part of the report, make certain to ask concerns and ask the conciliator to make modifications before you sign the report. After you and the other party sign the Mediator's Report, the mediator 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 set up a follow-up mediation session.

Homeowner preparation for mediation

Before the Informational Session and mediation, think of your objectives for the residential or commercial property. Do you wish to remain in the home or vacate? What is the marketplace value of the residential or commercial property? Just how much do you owe?

Some alternatives to foreclosure that you might wish to check out in mediation consist of:

- Permanent "loan adjustment;"
- Temporary or short-term "forbearance contract and repayment plan;"
- Giving the lending institution a "deed in lieu of foreclosure;" or
- Having the loan provider authorize a "short sale" of the home.

See Terms that may turn up in your mediation for meanings of these and other terms.

Before consenting to any particular technique, talk with a HUD-certified housing counselor. This is a totally free service to help you evaluate your monetary circumstance. The housing therapist will offer particular recommendations on what choices you may need to prevent foreclosure. A housing therapist will exist at your Informational Session, however you might desire to contact a therapist before the Informational Session. Find HUD-approved Housing Counseling Resources in Maine.

You might also wish to talk with a lawyer with experience in realty foreclosure law. A lawyer can supply info on the legal procedure specific to your scenario, aid determine legal defenses you may have in the court case, and assist you weigh alternatives.

You do not need a lawyer to go to mediation, but if you are represented by a legal representative, your legal representative needs to attend mediation. See Get Legal Help for choices for talking with a lawyer.

You are not required to bring documentation to the very first mediation session, however you may want to begin collecting a few of the following to prepare to deal with your housing counselor or legal representative:

- Any correspondence from the loan provider or mortgage servicer or its legal representative, even if the correspondence is unopened;
- Court papers (foreclosure grievance, copy of your action, and so on);.
- 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 arranged informative session

If you can not participate in an Info Session by the due date in the notification, you need to ask the court to set a new deadline (to "continue" your court occasion). Your request needs to be in composing and be gotten before the due date.

If you can not go to a mediation on the date arranged, you should ask the court for a brand-new date by a "motion to continue" your mediation session. Again, your request must remain in composing 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 demand. If you do not speak with the court that the motion to continue has actually been approved, you must attend the court occasion as arranged.

After mediation

Following each mediation session, the arbitrator sends a Conciliator's Report to the court, describing strategies and arrangements made in mediation. If celebrations make an arrangement to settle the case in mediation, the Mediator's Report describes the steps to close the case. When all the steps are completed and your case is settled, one or both celebrations must alert the court in composing. The case will then be over.

If you are unable to reach a final contract in mediation however dream to continue to work towards a possible alternative to foreclosure with the lending institution, you may ask the court to "remain" the case (stop briefly the case) for an amount of time. If you and the loan provider concur 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 instant strategy to keep interacting with the lender, the case is generally "gone back to the docket" (put back on the court's schedule) and progresses. However, you and the lender can try to settle the case at any point at the same time, even up to and at trial. See Foreclosure Step by Step for more info on the foreclosure court process.