Online mediation for struggling homeowners has taken a step forward thanks to a new website portal that will soon allow Maryland homeowners a way to submit documents to their mortgage lender without the hassle and uncertainty of sending them through snail mail.  The online portal provides a way for these homeowners to submit their documents through electronic means.  This will provide faster communication with their creditors as well as communication that is more convenient.

Online Mediation Portal to Open in October

The system is not yet live but is expected to be up and running by October of 2012 at the latest.

The first lender to make use of it is slated to be GMAC Mortgage, which is also funding the enterprise.  According to Raymond Skinner, who heads the Maryland Department of Housing and Community Development, the system will allow the state to keep better track of homeowners in distress.  "Foreclosure mediation is an important tool for homeowners who want to ensure the best possible outcome from dealing with their lenders," remarked Skinner when the portal was announced.

Foreclosure mediation in Maryland is based on a 2010 provision that allows distressed borrowers to request a mediation session with their mortgage creditors.  The aim of such sessions is to avoid foreclosure if that is at all possible.  These sessions are supervised by a state judge with expertise in administrative law.