Information on Mortgage and Foreclosure mediation in Milwaukee.
The City of Milwaukee, in partnership with University Law School, has started a foreclosure mediation program for residents. The mediation process can help prevent or stop a foreclosure. It works by bringing the lender and borrower to the table so they can negotiate a deal that benefits both parties. The benefits of this approach include it can stop a foreclosure, preserve home equity for borrowers, improve cash flow for banks and lenders, and also prevent blight for communities in the form of vacant homes littered across Milwaukee.
The Primary Mediator of the program, who is an experienced mediator and licensed attorney, conducts daily mediation sessions between lenders and homeowners and works closely with other volunteer mediators to serve the appropriate parties in foreclosure who may be requesting mediation services.
Details about the mediation program include:
- All foreclosure cases that are currently pending in the court system, subject to the program eligibility requirements and the approval of both parties, can be mediated by the City of Milwaukee.
- If you receive a foreclosure notice, a notice announcing the availability of the mediation process will be attached to the foreclosure summons by the bank or lender that is initiating the foreclosure action.
- All foreclosure cases that are filed on or after July 22, 2009, must include the Notice of Mediation with the Summons and Complaint documentation.
- The foreclosure mediation programs are offered only to residential homeowners in Milwaukee who reside in owner-occupied homes.
- You need to request assistance. Mediation needs to be requested by either the homeowner or the lender, and borrower requests for mediation will be screened to ensure there is some possibility of a successful outcome in the mediation process. It must be a legitimate request.
- The borrower and the lender must both agree to foreclosure mediation.
- The mediation sessions are typically scheduled anywhere from 45 - 60 days after the request for mediation is received as part of the process.
- Homeowners will need to meet with a HUD-certified housing counselor prior to attending the mediation session.
- In almost all cases the mediation session will serve as a venue for the borrower and the lender to modify the loan, work out new loan terms, proceed with a short sale, or some type of other solution that is mutually agreeable to both parties, and they will need to execute a final agreement between the parties.
- The programs tend to be successful. Other jurisdictions, cities, and states that have used mediation in their local foreclosure cases report a high success rate from the process, and more cities and states are turning to foreclosure and mortgage mediation plans as a solution for the housing crisis.
Contact the Milwaukee Foreclosure Mediation Program at P.O. Box 633, Milwaukee, WI 53201, phone: (414)288-4040 to apply for foreclosure mediation or learn more.