When a homeowner faces a possible bankruptcy, foreclosure mediation in Greenbelt, MD may allow them to stay in their home. According to the NCLC (National Consumer Law Center), 24 states and DC have such programs. Here, homeowners can learn more about foreclosure mediation.
In foreclosure mediation, mortgage lenders and homeowners meet with an unbiased third party to voice their concerns and attempt to find a foreclosure alternative. The goal is to renegotiate mortgage terms so they’re fair to the lender and the homeowner.
Successful foreclosure mediation in Greenbelt, MD benefits the homeowner and the lender. A foreclosure is quite expensive, as the lender must cover costs related to documents and appraisals. If possible, lenders want to find other solutions. Through mediation, both sides may be able to find a way for the homeowner to stay in the home. Furthermore, during mediation, all foreclosure-related activities cease.
If a homeowner elects to participate in mediation after they receive a notice of mortgage default, they can ask for an in-person meeting with the lender and a mediator. Through foreclosure mediation in Greenbelt, MD, the sides attempt to agree on modifications such as reduced interest and extended loan terms. For mediation to be successful, the homeowner must prove that they’re financially stable enough to make the required mortgage payments.
To take part in foreclosure mediation, homeowners must provide certain documentation. This may include the past year’s tax return, the past two months’ pay stubs, and a good-faith deposit of half the monthly mortgage amount. In certain cases, other documentation may be needed. For instance, some clients may need to provide proof of income, an itemized list of expenses, a completed and signed mortgage assistance application, and other financial data that may be beneficial.
The prospect of foreclosure can be a frightening one, especially for those who are going through it for the first time. However, foreclosure mediation provides a way for many homeowners to avoid the process and stay in their homes. For more information on the mediation process, call the office to schedule a free consultation or visit us at Law-margulies.com.
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