The New Hampshire Judicial Branch Office of Mediation and Arbitration (“OMA”) has launched voluntary foreclosure mediation program to assist borrowers and lenders, (in appropriate cases) where there is risk of foreclosure to have a facilitated discussion about whether it might be possible to restructure the at-risk loan and avoid a foreclosure for the benefit of both lenders and borrowers.
Mediation is a confidential facilitated process where a discussion between lenders and pre-screened borrowers takes place with a trained neutral. The facilitated conversation in this context helps the parties determine whether or not they can agree upon modification terms to avoid foreclosure. The borrower may seek more affordable loan terms and the lender may seek a more reliable payment stream, all for longer term loan stability. A successful agreement could permit borrowers to remain in their home with a more manageable loan, which in turn means that lenders would not own foreclosed properties that remain vacant and drive down property values in neighborhoods all across the state.
There is a simple process to determine eligibility for the program. Upon receipt of an eligibility screening form from the borrower, the lender determines whether the borrower who may be at risk for a loan default resulting in foreclosure, is eligible for the mediation program. To begin the process, borrowers who are interested in participating in the program should fill-out and return the screening form to their lender. The form is available on our website. The lender then reviews that loan to determine whether the borrower is eligible for a direct lending program like the Federal Home Rescue plan or if the borrower’s circumstances make a successful restructure unlikely. If the lender believes the borrower is ineligible to mediate then the lender notifies the borrower and the OMA that the borrower does not qualify for the program. Those borrowers whose profiles show that they may be good candidates for a restructured loan would be referred into the mediation program.
Once receiving the confirmation from the lender that a borrower qualifies for the program, the OMA will assign an experienced, trained, mediator to the matter and a mediation session will be scheduled at a courthouse convenient to both the lender and borrower. (Lenders may participate electronically with advance notice to the borrower and mediator so that arrangements can be made for such participation). No stay of foreclosure occurs by scheduling and participating in the mediation; but the foreclosure may be stayed by agreement if the matter is successfully resolved. (That may occur if outside approval of the loan modification is required in some circumstances.)
There is no cost to the borrowers or the lenders for this service while the OMA has grant funds to support the program. Borrowers and lenders are instructed to provide relevant information to each other and to the mediator in advance of the mediation. That information is specified in the program documents posted on this website. The mediation will not extend beyond one day. All discussions taking place in mediation are confidential. Any documents generated as a result of the mediation shall be treated as loan documents in the ordinary course of a restructured loan. The parties must participate in the process in good faith.*
Source: http://www.courts.state.nh.us/adrp/foreclosure/index.htm
