Many states in the US have started using foreclosure mediation services as a way to keep customers who are going through hard times from losing their homes. The Salem State Journal reports that the latest state to take on this tactic is Oregon. Those lawmakers who have adopted this system say that it works very well when coupled with housing counseling. They believe that around 10,000 residents may be helped by this action.

Contract Mediation Adopted in Several States

A report on the mediation services from the National Consumer Law Center states that, “It is now clear that these measures have worked. Foreclosure mediation and conference programs can save homes from foreclosure.” The report, released in February, reveals that one of the earliest states to work with such a program is one of the hardest hit. Nevada has had more foreclosures than any other state since the housing crisis began but since the program started there in 2009, they have helped with over 15,000 cases.

In 82 percent of these, foreclosure was avoided for a couple of reasons. Either the lender did not comply with regulations or both the homeowner and their lender came to a mutually beneficial agreement.

Civil Mediation Wins for Both Parties

Though all of these situations is going to be different, experts believe that when there is a way to keep a foreclosure from happening: it benefits both parties. The lender and the borrower both benefit from mediation services for a couple of reasons. The lenders' benefits are typically that the cost of a foreclosure is spared, but also a continued income from the property. The borrower gets to keep their home and everybody wins.

Many states have adopted these programs but for residents of one that has not, there are federal programs to help with delinquent mortgage debt. The best way is to contact someone involved in this type of service and ask about the chances for qualification.