The FDP supplies 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 main home. (Vacation residential or commercial properties, second homes, and business residential or commercial properties do not qualify for mediation.) Mediation in a foreclosure case includes the house owner, the lending institution, lawyers on the case, and a neutral conciliator. The mediator assists the celebrations discuss how they may settle their case. In mediation, the celebrations choose 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 scheduled informational session
After mediation
Contact

Benefits of mediation in a foreclosure

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

A long-term benefit of mediation is improved interaction in between the parties. Mediation gives the house owner and loan provider the opportunity to discuss how to meet their shared objectives. The arbitrator can help focus the discussion and raise options the parties may not have thought about or understood about.

Since the foreclosure mediation program began in 2010, around 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 Request for Mediation form included with the foreclosure court documents or send out a composed demand to the clerk's office where your case is being dealt with. Request mediation within 20 days of receiving the court papers. Even if you miss this due date, it deserves sending out the court a demand in composing if you believe mediation may help due to the fact that you may still be able to take part.

The Informational Session

Before a case can be arranged for mediation, the house owner needs to attend an Informative Session. If you ask for mediation in composing by the deadline, the notary will arrange you to attend an Educational Session with other house owners. You will get a notification in the mail to let you understand when and how to come to the Informational Session. It will take place either at a courthouse or on Zoom. Lenders may attend, but are not needed to participate in, due to the fact that this session offers details and assist tailored to property owners in foreclosure.

Court staff will greet you, and you will learn from a judge about the general process in a foreclosure case. A HUD-certified housing counselor will discuss how to work with your lender. These presentations may be by video. After you have actually been to an Educational Session, you will have your very first mediation session.

Mediation

In mediation, you will have the opportunity to talk about your goals for the residential or commercial property, ask questions, and discover your options. The lender will provide details on the status of the loan. You and the lending institution will discuss how you may prevent foreclosure and what files will require to be sent.

The conciliator will assist you and your lender create a particular strategy to resolve the case, if possible. The arbitrator does not take sides or decide how the case needs to be dealt with. At the end of each mediation session, the mediator writes a clear report on agreed next steps and deadlines. Learn more about mediation.

Mediator's Report

For every mediation session, the conciliator composes a Mediator's Report. The mediator will examine the report with you to ensure it is clear and that you agree with what it states. If you do not understand or concur with any part of the report, make certain to ask questions and ask the conciliator to make changes before you sign the report. After you and the other celebration sign the Mediator's Report, the arbitrator will submit it to the court for your file and you will get a copy of it.

Follow-up Mediation

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

Homeowner preparation for mediation

Before the Informational Session and mediation, think of your goals for the residential or commercial property. Do you desire to remain in the home or move out? What is the marketplace worth of the residential or commercial property? How much do you owe?

Some options to foreclosure that you may wish to check out in mediation consist of:

- Permanent "loan adjustment;"
- Temporary or short-term "forbearance agreement and payment strategy;"
- Giving the lender a "deed in lieu of foreclosure;" or
- Having the lending institution approve a "short sale" of the home.

See Terms that may come up in your mediation for definitions of these and other terms.

Before consenting to any particular approach, talk with a HUD-certified housing therapist. This is a complimentary service to assist you evaluate your monetary scenario. The housing therapist will provide particular tips on what options you may need to prevent foreclosure. A housing therapist will be present at your Informational Session, however you might wish to get in touch with a therapist before the Informational Session. Find HUD-approved Housing Counseling Resources in Maine.

You may also desire to talk with a lawyer with experience in genuine estate foreclosure law. A legal representative can provide info on the legal process particular to your situation, aid recognize legal defenses you may have in the court case, and help you weigh choices.

You do not require an attorney to go to mediation, but if you are represented by a legal representative, your legal representative should participate in mediation. See Get Legal Help for options for talking with a lawyer.

You are not needed to bring documentation to the first mediation session, but you might wish to begin gathering a few of the following to prepare yourself to work with your housing therapist or lawyer:

- Any correspondence from the lender or mortgage servicer or its legal representative, even if the correspondence is unopened;
- Court papers (foreclosure complaint, copy of your response, etc);.
- Recent pay stubs or other source of earnings;.
- Last two months' bank statements; and.
- Last year's income tax return.

If you are unable to attend your scheduled informational session

If you can not participate in an Info Session by the due date in the notice, you must ask the court to set a brand-new deadline (to "continue" your court occasion). Your demand needs to be in writing and be received before the deadline.

If you can not go to 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 request needs to be in writing and sent out to the clerk and the other parties.

Send your demand to the court (with a copy to the lender) 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 hear from the court that the movement to continue has actually been given, you must go to the court occasion as arranged.

After mediation

Following each mediation session, the arbitrator submits a Conciliator's Report to the court, explaining plans and agreements made in mediation. If celebrations make an arrangement to settle the case in mediation, the Mediator's Report describes the actions to close the case. When all the actions are completed and your case is settled, one or both parties need to inform the court in composing. The case will then be over.

If you are not able to reach a final arrangement in mediation but wish to continue to work towards a possible alternative to foreclosure with the lending institution, you may ask the court to "stay" the case (pause the case) for a time period. If you and the lender settle on this, both of you will submit 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 working together with the lending institution, the case is usually "gone back to the docket" (return on the court's schedule) and moves forward. However, you and the lending institution can try to settle the case at any point at the same time, even up to and at trial. See Foreclosure Step by Step to find out more on the foreclosure court process.