A local Judge in Lehigh County and The Community Action Committee (CAC) of the Lehigh Valley came up with a plan to try to slow down or stop the increasing number of foreclosures. It involves mediation between the homeowner and the lender. The services are provided at no cost. During this timeframe any foreclosure proceedings will be suspended as well in order to ensure the homeowner has adequate time.
After a mortgage foreclosure case is filed in Lehigh County, the CAC immediately sends out a notice to both the lender and the homeowner allowing the defendant to request a conference that will include a mediation session.
The goal of this is to ensure that a face to face meeting between the lender and the defaulted homeowner occurs, with a goal of trying to come up with a solution for both parties. Ideally the homeowners won’t lose their home, and the bank won’t be burdened with yet another bad mortgage. These sessions help facilitate communication between all parties.
There are conditions that need to be met in order for homeowners to be eligible to participate in the foreclosure mediation program. While terms could change over time, in general the home needs to be owner occupied and have less than four units to it. The bank or lender needs to also have filed a complaint again the Lehigh resident for a mortgage foreclosure.
A stay or freeze of the foreclosure process will also be put into place by the court system in Pennsylvania. This will provide the borrower time to review their options, which will include a consultation with a Housing Counselor or lender as they see fit. This will also allow the lender time to make a proposal to the homeowner to avoid foreclosure.
The homeowner will also be given time to respond to the proposal or attend the mediation sessions without the pressure and uncertainty of a sheriff’s sale. The Leigh County system may also go ahead and schedule the conciliation/medication sessions.
Hopefully the parties can come up with a new or modified home loan that is more affordable by the homeowner and that is acceptable to the lender. This can include a lower interest rate, extended payment terms, or maybe a lower monthly payment so that the homeowner can make a rebound in due time. As the fact is that a foreclosure doesn’t benefit anybody. After all the overall goal of any mediation program is to come up with a solution that works for both the homeowner and the lender. Both parties should benefit. Click here to learn more about foreclosure mediation.
Currently about 75 foreclosure mediation sessions are occurring per month in Lehigh County. Many families are able to keep their homes as a result of this. So there is an enormous demand for this service. Call the agency at phone (610) 691-5620.
Like this site?