Private Organizations
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Mediation Program for Distressed Homeowners: Non-Judicial Foreclosure States (2022) creates a state-run mediation process prior to a foreclosure. Prior to any foreclosure, the consumer and the state mediation agency must receive a detailed notice concerning a defaulted home mortgage. After the notice is sent and until a mediator’s report, no fees can be assessed, or a foreclosure initiated. The state agency initiates the mediation process requiring the parties to come to mediation with specified information. The model law sets out standards for reaching an agreement as to steps to be taken concerning the mortgage. If no agreement is reached the mediator issues a report, and the homeowner can opt for a judicial foreclosure proceeding. The model also discusses responsibilities concerning the mediation fees and non-disclosure of information.
