What You Need To Know About Mandatory Mediation In Home Foreclosure
We live in turbulent times when anything can happen to affect home sales, mortgages and foreclosures. Foreclosures can happen because of an illness or death, job loss or even a dissolution of a marriage. Victims of foreclosure are hardworking people who face spiking interest rates and a drop in property value. As a result, homeowners end up owing more to the bank than they could ever recover through sale of the home, and the lending institutions that pursue foreclosures end up selling the home for less than they are owed. Foreclosures serve neither party very well.
In an effort to find a better solution to these financial challenges, local courts in Illinois use mandatory mediation in home foreclosure actions. An arbitrator acts as a neutral party between the homeowner and the lending institution, negotiating alternatives to foreclosure such as:
- Loan modification
- Short sale
- Deed in lieu of foreclosure
- Cash for keys
A Better Way To Avoid Home Foreclosure
Make sure to take action quickly if you receive a complaint for foreclosure. As a homeowner, you have 30 days to file the necessary paperwork and pursue these other remedies. If you do not, the bank can proceed with the foreclosure.
Even though mediation involves an arbitrator, it is important to retain counsel from an experienced lawyer. Financial institutions have the legal and financial resources to take advantage of your situation and negotiate a deal that favors them over you.
Save Your Home And Understand Your Options
I am Glen Carbon attorney Randall P. Steele. For over 30 years I have helped people in the community save their homes and protect their assets. I can represent you through every stage of the mediation process and employ bankruptcy as a method of foreclosure defense should mandatory mediation not provide the solutions you need.