Foreclosure FAQs
My servicer won’t respond to my modification requests. Will mediation help?
Yes. Mediation offers an opportunity to talk face-to-face with your servicer's representative and get an answer to your modification request. In addition to the mediation, you should continue to contact your servicer both before and after the mediation to negotiate a positive outcome. If you request mediation, a foreclosure sale cannot occur until at least 15 days after the mediation takes place.
How long does the mediation process take?
Mediations are scheduled within 60 days from the homeowner's request. Lenders are not allowed to hold a foreclosure sale until at least 15 days after the mediation takes place.
Why should I have an attorney represent me?
Foreclosure is a legal process, and your lender with have their lawyers at the mediation. A lawyer on your side who is knowledgeable about state and federal mortgage servicing and consumer protection laws can help!
Is every homeowner entitled to a loan modification?
No. Not every homeowner will be able to obtain a loan modification.
What other alternatives to foreclosure can I achieve at mediation?
Borrowers may also be able to negotiate a forbearance, reinstatement, short sale, deed in lieu of foreclosure, or other opportunities for a homeowner to relinquish the property before a foreclosure occurs.
What if mediation does not settle the dispute?
If mediation isn’t successful, you must present your legal defenses or claims to the Circuit Court to dispute the foreclosure within 15 days following the end of the mediation. Civil Justice can assist you with referrals to our network of attorneys in this situation or connect you with other legal services organizations.
Can I file a claim in court to stop a foreclosure sale?
Maybe. Under limited circumstances, it is possible to file a motion to stay to stop a foreclosure sale. There are very specific requirements for filing a motion to stay, so it benefits you to have an attorney to represent you.
What is pre-file mediation? Do I qualify?
Pre-file mediation allows homeowners to attend mediation with their lenders prior to a foreclosure action being filed in court. While this gives you more time to consider your home retention options, not all lenders offer pre-file mediation. You should contact your lender to determine if they will participate in pre-file mediation.
Are there any specific requirements for pre-file mediation?
Yes. You must take part in a mandatory housing counseling session – your pre-file mediation packet that is mailed to you will give you more details. Additionally, if you choose to participate in pre-file mediation, you will no longer have the right to post-file mediation, unless the lender agrees.