| Proper preparation is crucial for foreclosure mediation | | | | advice to either party. Therefore, the homeowner |
| to ensure that the case will be resolved in an efficient | | | | must thoroughly review the mortgage contract and |
| and effective manner. Not only does this mean | | | | exhibits and make sure he or she if familiar with all of |
| creating or gathering all documents but also knowing | | | | its terms and conditions prior to the foreclosure |
| what to expect at your foreclosure mediation. | | | | mediation. Borrowers typically appear at foreclosure |
| Financial information about the homeowner must be | | | | mediations unrepresented; however, if he or she does |
| provided to give a clear picture of the borrower's | | | | not understand the legal implications of the proceeding, |
| current financial situation. A monthly budget listing all of | | | | they should seek out legal representation. |
| the borrower's sources of income versus typical | | | | Both parties should not only be prepared to negotiate |
| expenditures had proven helpful. Documented proof | | | | at this meeting but should also appear with an open |
| can be provided by receipts of relevant items | | | | mind and good faith intent to collaborate. The lender |
| purchased, copies of cancelled checks, bank | | | | and borrower must remain open to considering |
| statements, etc. Paycheck stubs for the last three | | | | alternative viewpoints and remedies. The final outcome |
| months, W-2's for the last two years, or copies of the | | | | of foreclosure mediation, as in any mediation, should be |
| last two years' tax returns are also beneficial and | | | | a mutually agreed upon solution that will be workable in |
| often required. Credit card, retirement account, and all | | | | the long run. |
| other investment statements should be presented as | | | | On final note, the borrower must realize that mediation |
| well. | | | | is not a guarantee to avoid foreclosure. In certain |
| The homeowner should also gather all information | | | | circumstances, and without a source of additional |
| pertaining to the real estate property in danger of | | | | income or a way to decrease expenses, a short sale |
| foreclosure. Appraisals or similar evaluation on the | | | | or deed in lieu of foreclosure (sometimes even "cash |
| property may serve as evidence of the property's | | | | for keys") may be the best and most reasonable |
| value. Photographs of all of the rooms in the house, the | | | | solution. The better prepared a borrower is at |
| yard, and all buildings on the lot provide supporting | | | | mediation - with documentation and an understanding |
| information about the homestead. A copy of the | | | | of the process and the issues involved - the better |
| mortgage contract will be necessary if its terms are in | | | | leverage the borrower will have during the settlement |
| dispute. And, a copy of the homeowner's insurance | | | | process and the better chance for a successful |
| policy or certificate may be required as well. | | | | mediation. |
| When preparing for mediation, the borrower must | | | | If you or someone you know is facing foreclosure |
| realize the nature of the mediation process. This | | | | mediation, be sure to insist on a qualified, competent |
| requires an understanding of the mediator's role as a | | | | Circuit Court certified mediator with experience in |
| neutral and impartial third party in the settlement | | | | foreclosure law and mortgage modifications. |
| process. It is not the mediator's duty to give legal | | | | |