Foreclosure Mediation (3rd Circuit only)
Foreclosure mediation is offered in the Third Circuit (on the Big Island) as a means to help homeowners negotiate a mortgage modification, or to come to some other agreement (like a deed in lieu of foreclosure) with the lender to potentially avoid a deficiency judgment. Having judicial oversight is particularly helpful to homeowners who have tried for a modification over and over again with no results. Unfortunately, mediation in judicial foreclosures is not currently available on other islands.
- Within 15 days of being served with foreclosure, you must file (in triplicate), the mediation request form that you should have received with your foreclosure papers, with the court in which your foreclosure case was filed.
- Upon receipt of the request, the court will schedule a Pre-Mediation Conference. You should receive this information from the lender's attorney within two weeks of filing the request. If you do not receive it within that time frame, you should contact the lender's attorney and/or the court.
- At the conference, the judge will verify that you are still living in the home (the program is for homeowners using the property as their primary residence only) among other things, and will decide whether or not to set the case for mediation.
- Assuming the case will go to mediation, you will be ordered to contact the mediation center, and will be asked to supply paperwork showing your current financial status: paystubs, profit and loss statements (if self-employed), utility bills, tax returns, etc.
- The mediation process can be daunting, and it would probably be best to seek the help of an experienced attorney.