What are some possible solutions that may be agreed upon?
There are a number of possible solutions that you and the lender can explore. The solution will depend upon what you can afford (based on what your income and expenses are), what other resources you have, what type of loan you have, the amount you owe in arrearage and on the mortgage, and other factors that will be discussed during the mediation. The following are some possible solutions:
  • Reinstatement: All amounts required to bring your loan current must be paid (including late fees, attorney fees, taxes, insurance, etc.) Once these amounts are paid, you will be back on your regular payment plan.
  • Forbearance or Repayment: Regular monthly payments are made according to your loan agreement, and an additional monthly payment is made each month that is applied to the delinquent amount. Once the delinquent amount is paid in full, the normal payment amount resumes.
  • Extension Agreement: This is an agreement in which you pay a portion of the amount of your delinquency, and the remaining portion of the delinquent amount is added on the end of your loan.
  • Loan Modification: This is a written agreement between you and the lender that permanently changes one or more terms of your mortgage. For example, the agreement could increase or decrease your interest rate or principal balance.
  • Deed in Lieu of Foreclosure: The deed is voluntarily given to the lender in full satisfaction of the debt owed.
In addition, other arrangements between the borrower and lender may be possible that will help the borrower avoid a foreclosure or will help the borrower if a foreclosure is inevitable.

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1. I have received a Summons and a Complaint for Foreclosure. What is this?
2. On the Summons, I am told to file an Answer. What is an Answer?
3. The Summons says that if I do not file an Answer within 28 days, a default judgment could be issued against me. What is a default judgment?
4. With the Summons and Complaint for Foreclosure I received a Request for Foreclosure Mediation and a Questionnaire. What is Foreclosure Mediation?
5. What should I do with the Request for Foreclosure Mediation and Questionnaire?
6. What will I need to do to prepare for the Foreclosure Mediation, and what should I bring to the mediation session?
7. What will happen at the mediation session?
8. What are some possible solutions that may be agreed upon?