Resisting Foreclosures Through Mediation Analysis of Mortgage

A mediation analysis of a homeowner's status on his mortgage holds out some hope of keeping a property owner out of court.  Mediation can often handle such matters more quickly than the foreclosure process used in the judicial system.  If a lender and borrower can agree to work out their differences in mediation, the outcome could well be a better result for both parties to the transaction.  The lender would avoid a long and costly court battle, during which the property value may continue to decline; the borrower would avoid a black mark on his credit record.

New Jersey's Need for Mediation Analysis of Mortgages

A key part of any mediation to resolve an issue of a mortgage in arrears is an analysis of a homeowner's finances, since any rearrangement of loan terms would be a waste of time if the new terms are not feasible for the borrower.  Some states encourage the process, but New Jersey is an example of a state where the court process is used in all foreclosures.

With the current state of the economy, this focus on using the judicial system means that the courts in New Jersey are hopelessly backlogged.  Current estimates indicate that to handle just the foreclosures currently in the court system would take almost 50 years, time during which the property cannot be sold.  Foreclosure mediation would be a viable solution for many of these cases.

Learn more about Mediation or find a Mediation Attorney in the National Mediation Directory.