This
new law which will ensure that every Rhode Island homeowner who is having
trouble making their mortgage payments has the opportunity to communicate
directly with their lender to try and find a solution that will help them get
back on track with their mortgage and remain in their home. It is also an
important tool to help direct homeowners to the resources they need early
enough in the foreclosure process to make a difference. I am confident that it
will result in fewer foreclosures, which is great news for homeowners, lenders
and municipalities.
The
law took effect on September 13, 2013.
To learn if you are eligible for mortgage foreclosure mediation, or to speak with a HUD-certified counselor, please
visit Rhode Island Housing at http://www.rhodeislandhousing.org/
or call 401-457-1234 or toll free at 1-800-427-5560.
How does the
foreclosure mediation process work for homeowners?
When
a homeowner is no more than 120 days delinquent on their mortgage, they will
receive notification from their lender or servicer that they have the right to
a foreclosure mediation conference. They will be contacted by the mediation
coordinator who will give them information on HUD-approved housing counselors
who can help them put together the package of financial information they will
need for the mediation conference. If
the homeowner decides to participate in a mediation conference, they must
inform the mediation coordinator of their decision and a mediation conference
will be scheduled. There is no cost to the homeowner for the mediation conference or the
housing counselor. If the homeowner does not respond to the mediation
coordinator or chooses not to participate in mediation, the mediation
coordinator will provide the lender with the appropriate certification needed
to move forward with a foreclosure.
At
the mediation conference, which will take place no more than 60 days after
notice from the lender or servicer, the homeowner, their housing counselor, the
foreclosure mediation coordinator and a representative of the mortgage servicer
with the authority to negotiate on the lender’s behalf will try to come to an
agreement that will allow the homeowner to remain in their home. If they are
not able to reach a resolution, and the foreclosure mediation coordinator
determines that the lender made a good faith effort to achieve a satisfactory
workout, the coordinator will provide the lender with the certification needed
to move forward with a foreclosure.
