State foreclosure mediation programs that bring together mortgage servicers and troubled property owners put foreclosures on hold when mediation has started. Foreclosures should be halted when mediation has been requested by the homeowner because of demonstrated worth in helping thousands of homeowners across the country.
The cost of "unnecessary" foreclosures is extreme in the hardest hit states and communities as each foreclosure costs each home within a mile radius, a substantial price drop.
Though the foreclosure process is necessary in some cases, there are reasons why it can be delayed until well documented efforts have been pursued to allow the mortgage company to protect its interests and the homeowner to have her rights preserved thorough state sponsored mediation programs.
If a homeowner wants to keep their home, and the mortgage payment is the problem, they should get a loan disposition analysis done to see what they may qualify for, given the income the homeowner claims they can prove.
A “loan disposition analysis” can be conducted by neutral third parties to show the mediator why a modification is more profitable for the investor or mortgage servicer over a foreclosure.
The homeowner can go to mediation with the loan disposition analysis showing why a modification is more profitable than foreclosure, while specifying specific terms they want, such as interest rate, number of months to pay back, new loan balance, and monthly payment.