Everyone can agree that losing one’s home would be devastating, whether it’s a home you own or are renting. In many cases, homeowners may feel like there’s no alternative solution for them — that the home they’ve been residing in is simply going to be foreclosed, because they can’t make their mortgage payments. For many Americans, this is a scary reality.. Perhaps, due to the economic recession, they’ve been laid off or had a difficult time making ends meet. However, there are alternatives available other than foreclosure or the eviction process and it’s important for homeowners to know what those are. In some cases, property dispute mediation may be helpful — it may allow the homeowner and their lender to come to a mutual agreement on how to pay back what they owe. In some cases, declaring bankruptcy might help ward off the foreclosure until you can get enough money to pay back the lender what you owe. And in all cases, having a real estate lawyer on your side will help smooth the process over.
Should I Be Worried About Foreclosure?
If you’ve been noticing that you’re getting behind on your bills, you might want to start thinking about allocating some of your funds to your mortgage. In 2013, about one in 96 homes foreclosed and in general, one out of 200 homes will be foreclosed. However, you can check your state laws for regulations and rules about foreclosure — each state has pretty specific and rigid guidelines for what kind of notice you’re supposed to receive before foreclosure and give you opportunities to pay what you owe before your home or property is sold. If you’re in this situation, you’ll want to talk to an attorney immediately to discuss your options and possibly engage in early property dispute mediation. If your home is foreclosed and you’re evicted, you can take it court if you think you were unfairly ousted. However, in this scenario, a judge will determine the fate of your case in around 20 days after you or your landlord puts forth a request for trial.
What Is Property Dispute Mediation?
This is also often known as foreclosure mediation. This process is designed to assist homeowners not foreclose their homes by putting forth another solution that will aid both the homeowner and their lender. In many cases a lawyer from a real estate law firm will help arrange the mediation between the homeowners, lender, and the mediator (a neutral third-party).
During the mediation, the three parties talk about the financial situation the homeowner and lender find themselves in and try to figure out a way for either the homeowners to keep their home or for them to relinquish the property without having to undergo the foreclosure process. This type of mediation often helps the homeowners and the lender find a solution that meets in the middle and is agreeable to all parties.
What Can I Expect From Property Dispute Mediation?
There are a few different results that property dispute mediation or foreclosure mediation can have. Either the loan that the homeowner and lender have agreed to can be changed in some way to allow both parties to get what they want or a repayment agreement (often accompanied by a payment plan) can be worked out.
In other cases, a forbearance agreement can be reached. This gives homeowners short-term relief in paying what they owe and is essentially and agreement between the homeowner and the lender to postpone the foreclosure of the home. A short sale is also possible, in which the real estate is sold, but the net proceeds are a bit short of what the homeowner owes the lender. In this case however, lenders agree to take that net proceeds of the sale (less than what they deserve) and the homeowners agree to walk away with little to none of the proceeds.
Foreclosure doesn’t have to be the only answer. There are plenty of other arrangements you can reach with the help of a good real estate lawyer and property dispute mediation sessions. Don’t just settle because you’re told to — explore your options thoroughly and decide!