With the new year comes a new option for Mainers facing foreclosure on their homes. The Maine court system now has a foreclosure diversion program that manager Lauren Weliver says will force lenders to mediation for 90 days to see if a mortgage modification can be worked out.
"There are a lot of federal efforts to get mortgage companies to modify loans. But homeowners were having a hard time finding someone at the mortgage company to actually talk to about modifying their loan," Weliver says.
Under the state program, lenders would be forced into 90 days of mediation to try and reach a loan modification. Unlike similar programs in other states, Weliver says Maine will require homeowners to attend information sessions on the paperwork they need to gather for mediation, and both sides will fill out an F.D.I.C. form that will give them a starting point for negotiation.
Weliver says the program is available to anyone who is served with foreclosure papers after December 31, 2009. But Weliver says it's also hoped the existence of the foreclosure diversion program will prompt lenders to work with mortgage holders before even coming to court with a foreclosure action.
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