The FDP supplies mediation in foreclosure cases at the demand of a property 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 get approved for mediation.) Mediation in a foreclosure case includes the homeowner, the lending institution, attorneys on the case, and a neutral mediator. The conciliator helps the celebrations discuss how they might settle their case. In mediation, the parties choose the outcome 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 not able to attend your scheduled informative session
After mediation
Contact

Benefits of mediation in a foreclosure

Parties have a chance to talk with each other in an informal setting with the help of a mediator. 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 parties. Mediation provides the house owner and lending institution the opportunity to speak about how to fulfill their shared goals. The arbitrator can help focus the conversation and raise options the parties may not have thought about or learnt about.

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

How to ask for mediation

Please do not neglect the court papers. Complete and return the Response to Complaint and Request for Mediation kind consisted of with the foreclosure court documents or send out a written request to the clerk's workplace where your case is being handled. Request mediation within 20 days of receiving the court papers. Even if you miss this deadline, it is worth sending the court a demand in writing if you think mediation may help since you might still be able to get involved.

The Informational Session

Before a case can be set up for mediation, the house owner must attend an Informational Session. If you request mediation in writing by the deadline, 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 know when and how to come to the Informational Session. It will take location either at a courthouse or on Zoom. Lenders might go to, however are not required to go to, since this session supplies info and help tailored to house owners in foreclosure.

Court personnel will greet you, and you will discover from a judge about the basic process in a foreclosure case. A HUD-certified housing counselor will discuss how to deal with your lender. These presentations might be by video. After you have been to an Informational 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 discover your choices. The lending institution will offer info on the status of the loan. You and the lender will discuss how you may prevent foreclosure and what documents will need to be sent.

The conciliator will help you and your loan provider come up with a particular strategy to fix the case, if possible. The arbitrator does not take sides or choose how the case needs to be solved. At the end of each mediation session, the mediator composes a clear report on agreed next actions and deadlines. Learn more about mediation.

Mediator's Report

For every mediation session, the arbitrator writes a Mediator's Report. The mediator will evaluate the report with you to ensure it is clear which you agree with what it states. If you do not understand or agree with any part of the report, make certain to ask concerns and ask the arbitrator to make changes before you sign the report. After you and the other party 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 state that, and the court will schedule 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 market worth of the residential or commercial property? How much do you owe?

Some alternatives to foreclosure that you may wish to check out in mediation include:

- Permanent "loan modification;"
- Temporary or short-term "forbearance contract and payment strategy;"
- Giving the lender a "deed in lieu of foreclosure;" or
- Having the lender authorize a "brief sale" of the home.

See Terms that might show up in your mediation for definitions of these and other terms.

Before consenting to any particular method, talk with a HUD-certified housing therapist. This is a free service to help you evaluate your financial scenario. The housing counselor will offer specific suggestions on what choices you may have to prevent foreclosure. A housing therapist will be present at your Informational Session, but you may want to call a therapist before the Informational Session. Find HUD-approved Housing Counseling Resources in Maine.

You might likewise want to talk with an attorney with experience in realty foreclosure law. A legal representative can supply info on the legal process specific to your scenario, assistance determine legal defenses you might have in the court case, and assist you weigh choices.

You do not need an attorney to go to mediation, however if you are represented by an attorney, your legal representative should attend mediation. See Get Legal Help for options for talking with a legal representative.

You are not required to bring documentation to the first mediation session, but you may wish to begin gathering a few of the following to get prepared to work with your housing therapist or legal representative:

- Any correspondence from the lender or mortgage servicer or its attorney, even if the correspondence is unopened;
- Court documents (foreclosure problem, copy of your action, and so on);.
- Recent pay stubs or other income;.
- Last two months' bank declarations; and.
- In 2015's tax return.

If you are not able to attend your set up educational session

If you can not go to a Details Session by the due date in the notice, you must ask the court to set a brand-new deadline (to "continue" your court event). Your demand needs to be in writing and be gotten before the due date.

If you can not go to a mediation on the date scheduled, you must ask the court for a brand-new date by a "movement to continue" your mediation session. Again, your demand must remain in writing and sent to the clerk and the other parties.

Send your demand 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 hear from the court that the motion to continue has been granted, you must go to the court occasion as set up.

After mediation

Following each mediation session, the mediator sends an Arbitrator's Report to the court, explaining plans and contracts made in mediation. If celebrations make an agreement to settle the case in mediation, the Mediator's Report explains the steps to close the case. When all the actions are completed and your case is settled, one or both celebrations should inform the court in composing. The case will then be over.

If you are not able to reach a last arrangement in mediation but dream to continue to work towards a possible option to foreclosure with the loan provider, you may ask the court to "remain" the case (stop briefly the case) for an amount 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 a contract in mediation and have no instant plan to keep interacting with the loan provider, the case is usually "gone back to the docket" (return on the court's schedule) and progresses. However, you and the lender can attempt to settle the case at any point in the procedure, even up to and at trial. See Foreclosure Step by Step for additional information on the foreclosure court procedure.