Foreclosure mediation in Peoria County
Struggling homeowners in Peoria County that are close to or facing a foreclosure can get help. The county's foreclosure mediation program, HUD certified housing counseling specialists as well as legal aid help negotiate with the lender to potentially resolve mortgage issues and prevent a foreclosure. Find details on foreclosure mediation in Peoria County.
The Tenth Judicial Circuit Court is part of the process as well. Mediation is a free service that homeowners have taken advantage of it in order to get back on track and current with their home loans. The court also has other details on mortgage relief programs and foreclosure prevention options in Peoria County https://www.10thcircuitcourtil.org/354/Mortgage-Foreclosure.
How mediation helps stop a foreclosure
If a foreclosure is filed in the county, the homeowner can request a pre-mediation conference. This needs to occur within 60 days of the original notice. Details on the program and how it works must also need to be provided to the borrower. Borrowers will need to receive a form from the court and/or lender explaining how the mandatory foreclosure mediation program works in Peoria County.
Mediators in this program are typically legal aid attorneys from Prairie State Legal Services, former judges, or HUD-approved counselors with substantial experience in both arranging housing counseling as well as real estate law. The local non-profit METEC Resource Center is also a resource that arranges negotiated solutions between lenders and households.
Their role is to facilitate communication between the homeowner and the mortgage servicer, whether it is a bank or some other organization. Foreclosure mediation can result in a home loan modifications, negotiate repayment plans to give the borrower time to get or track, or other alternatives to foreclosure. Find a listing of private and government mortgage assistance programs.
The form from the Tenth Judicial Circuit Court will list documents the borrower should bring to the conferenc, but of course a HUD agency or legal aid will help with this. At the pre-mediation conference, which the lender or mortgage servicer does not attend, the neutral, third party mediator reviews the homeowner’s documents and financial situation. They will evaluate the entire case, and decide whether the borrower might qualify for some type of relief.
After this review and consultation with the borrower, if the Tenth Judicial Circuit Court or the HUD counselor determines the borrower may qualify for further assistance, the mediator will then schedule the homeowner for a free mediation session within 30 days. Failure of any party (whether homeowner or borrower) to attend or to participate in good faith in the mediation session will result in sanctions by the court, including possible dismissal of the foreclosure filing.
METEC Resource Center Housing Counselors can also be involved in trying to negotiate alternatives to a foreclosure. This HUD certified organization will also provide information on local resources will be included in the notice of mediation scheduled. However the borrower is not required to see a housing counselor before the mediation session begins.
If mediation fails, other programs may provide help with a foreclosure. During the course of this review, if the borrower does not qualify for additional support, the mediator will assist the lender and homeowner in discussing a consent foreclosure in which the lender will waive any deficiency. If no agreement is reached during the cross of this process, the foreclosure resumes while other options are explored even including other legal aid resources in the state of IL.
Contact information
As noted, a few different non-profits organizations in Peoria County can be involved. This is in addition to the local court. For other information on mediation try METEC Resource Center at 2605 W Krause Street, Peoria, IL 61605 (call (309) 676-3832) or try Prairie State Legal Services at 101 SW Adams St, Peoria, IL 61602. Call (309) 674-9831.
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