Foreclosure mediation in Vermont.
Vermont residents who have received a foreclosure notice can contact the local court to request mediation. This should be done as soon as possible, and ideally as soon as you have received a foreclosure notice from your bank or lender.
Homeowners will need to write to the court's civil division department. Notify the court that you are requesting a mediation session, and that you want to be involved in the foreclosure case and process. This notice needs to be sent to the court that is handling your case.
If you are uncomfortable in doing this on your own, not sure of who to contact, or would like further guidance, then you can always contact Vermont Legal Aid or a HUD approved counseling agency. Legal Aid can be reached at 1-800-889-2047, and it is a non-profit legal organization that provides qualified individuals with a number of free legal services and advice, including support when it comes to dealing with a foreclosure filing or mortgage delinquency. Or read more mortgage help and find additional information on HUD certified counseling agencies.
This law went into effect back in July 2010. So as of that timeframe, homeowners in Vermont have the ability to request mediation. Individuals will be able to meet with a representative of their mortgage servicer, bank or lender and review any available programs that can help them stay in their home. They will assist homeowners, negotiate with your lender, and ensure that all options and assistance programs are explored. All of this will be facilitated by a neutral third party, also known as a mediator.
The Vermont foreclosure mediation law applies to a number of circumstances. Even those homeowners who have home loans that are subject to the federal government Home Affordable Mortgage Program (HAMP), whether or not the loan has already qualified for a HAMP modification (reduction in mortgage payments), are eligible. It is important to note that going through the Vermont foreclosure mediation process may help people save their home, and it is a service that any homeowner can take advantage of.
The court may have special mediation programs for those whose home loan is subject to HAMP. However borrowers should still write their local court and ask to participate in their case no matter what. Even in non-HAMP-loan cases, people may still be eligible for free or reduced priced foreclosure mediation services. It is recommended that people contact their local court for details on the program.
If your foreclosure case was filed before July 1, 2010, a mortgage loan modification from HAMP may be requested for up to five months after the judgment has been entered by the court. However, if the foreclosure mediation session is requested from the court after the judgment has been filed, the Vermont homeowner will need to show that there is good cause for the late request.
If you had a HAMP-loan modification and you had a foreclosure case filed on or after July 1, 2010, then mediation may be requested up to four months after judgment is entered. You should always check with the court to be sure your case is eligible for mediation as there may be some exceptions.
How does the Vermont foreclosure mediation process work
After the borrower requests mediation from their local court, the mediator will contact you to schedule the initial meeting. You will be required to send the mediator a snapshot of your financial information including proof of other income as well as copies of your two most recent pay stubs. It may be helpful to have an attorney help you, and maybe Vermont legal aid can facilitate this. This lawyer can represent and advise you in this process. Another option for homeowners who cannot afford an attorney is they can contact Vermont Volunteer Law Project, as they may have someone available.