A foreclosure mediation, or mortgage mediation, is where a homeowner, their legal representative, their lender, the lender’s attorney and an unbiased third party all meet. The purpose is to try to find an alternate solution to foreclosure that works for the homeowners and the lender alike.
The biggest benefit to filing for mediation is the opportunity to put a foreclosure on hold. With mediation, the decision issued by the lender must be discussed before they can take any further action. This means lenders cannot proceed with foreclosure until the mediation is formally closed and certified.
Since mediation extends the foreclosure timeline, you may be able to help yourself buy some time to make financial arrangements or decisions.