- Who sends it
- The court, a state agency, a program administrator or the lender
- What it starts
- A sign-up deadline, often 15 to 30 days
- Do this first
- Return the form or call the number on the notice before the deadline
What this notice is
Some states and courts run programs that bring you and your lender together before the home can be sold. They are called mediation, settlement conferences, conciliation, diversion or resolution conferences. In most programs the lender must take part in good faith, and you can explore options like a loan modification, short sale or deed in lieu.
The notice usually tells you how to sign up, what papers to bring, and any fee. Some programs are automatic; others only start if you ask.
What it does and does not mean
- It does not mean you have agreed to anything. The lender is not required to offer a particular deal.
- In many programs the sale cannot go forward until mediation ends. In others, such as New Jersey's and many Ohio counties', mediation does not stop the lawsuit, so you must still file your answer.
- It does not replace your federal rights. Keep sending your servicer what it asks for in your loss mitigation application.
States with programs, and the deadline to ask
- Connecticut: file an Appearance and Foreclosure Mediation Certificate within 15 days after the return date. No fee.
- Delaware: automatic; meet a HUD-approved counselor and file the Certificate of Participation within 30 days of service. The conference is 45 to 75 days after service.
- District of Columbia: return the Mediation Election Form within 30 days after the Notice of Default is mailed (out-of-court route).
- Hawaii: for power of sale foreclosures, return the election form with a $300 fee within 30 days.
- Indiana: ask for a settlement conference within 30 days after you are served. No cost to you.
- Maine: return the Response to Complaint and Request for Mediation within 20 days; if late, send it anyway.
- Maryland: file the request within 25 days after the final loss mitigation affidavit, with a $50 fee or a waiver request.
- Nevada: file a petition within 30 days after you are served with the Notice of Default.
- New Jersey: ask within 60 days after you are served, with a free housing counselor's signed certification. No fee.
- New York: the court schedules a settlement conference within 60 days after the lender files proof of service. Going to the first conference gives you 30 more days to answer.
- Oregon: pay the fee (no more than $200) and send documents within 25 days of the resolution conference notice.
- Rhode Island: required before a power of sale foreclosure; free, and held within 60 days after the notice is mailed.
- Vermont: file the mediation request form that comes with the complaint as early as you can.
- Washington: a housing counselor or attorney must refer you no later than 90 days before the sale date. Call 1-877-894-4663.
- New Mexico: a court Foreclosure Settlement Program; submit the Homeowner Information Form by your deadline.
- County programs only: Illinois (Cook County and others), Ohio, Pennsylvania (Philadelphia and others) and Wisconsin. Ask your court clerk.
- Iowa: no court-ordered program, but free voluntary help through Iowa Mortgage Help at 877-622-4866.
What to do this week
- Find the sign-up deadline on the notice and meet it. If you are late, ask anyway; some programs still allow it.
- Call a free HUD-approved housing counselor at (800) 569-4287. Several programs require you to meet one first.
- Gather pay stubs, tax returns, bank statements, a budget, your mortgage statement and a hardship letter.
- Keep filing anything the court requires, such as an answer, on time.
- Go to every session, even if you are not fully prepared, and read any mediator's report before you sign it.
Scams tied to mediation
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
- Anyone who wants payment by wire, cashier's check or a payment app, or who asks you to sign over your deed.
- Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.
- Anyone who says they can "represent you in mediation" for an upfront fee. HUD-approved counselors may not charge for foreclosure counseling. If you want a paid representative, use a lawyer licensed in your state.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
Do I need a lawyer for mediation?
No, but it helps. Many programs have free housing counselors, and some have legal aid on site. In New York, a homeowner without a lawyer is treated as asking to proceed as a poor person, and the court can appoint a lawyer. See lawyers by city.
My state has no mediation program. What can I do?
You can still apply for loss mitigation with your servicer and use your federal rights. A housing counselor can negotiate for you. See your federal rights.
What happens if mediation fails?
The foreclosure usually picks up where it left off. In Maryland, for example, the sale can be scheduled and you have 15 days to ask the court to stay it. Ask the mediator or a lawyer what happens next in your state.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.
Sources
- Connecticut Judicial Branch: Foreclosure Mediation Program
- Delaware Attorney General: Automatic Residential Mortgage Foreclosure Mediation
- Indiana Courts: Mortgage foreclosure self-service
- Maine Judicial Branch: Foreclosure Diversion Program
- Maryland Commissioner of Financial Regulation: Foreclosure process summary
- Home Means Nevada: Foreclosure Mediation Program
- New Jersey Courts: Foreclosure self-help
- New York Courts: Foreclosure information for homeowners
- Oregon Foreclosure Avoidance Program
- Washington Department of Commerce: Foreclosure Fairness Program
- CFPB: Find a housing counselor
- HUD: Avoiding foreclosure
- 12 C.F.R. § 1015.5, ban on advance fees for mortgage relief (eCFR)
- FTC: Mortgage relief scams