What does the mediator do?

The mediator helps the parties discuss options for settlement and tries to clarify communications between the parties. A mediator is not an advocate for either party. A mediator is not a judge or magistrate. If a borrower thinks a lender is not complying with the law, then the borrower must seek a remedy from a judge or magistrate. A mediator has no power to issue orders or to sanction a party.

What do the parties do?

Each party (with his/her attorney) is responsible for the case analysis and negotiation. Each party is expected to come to the mediation fully informed and prepared to make decisions to resolve the case.

What situations would benefit from mediation?

Mediation may be helpful if the borrowers have an attorney to assist (or the borrowers feel that they can make informed decisions without an attorney) AND either of the following exists:

• The borrowers have enough income to support a re-negotiated loan, OR
• The borrowers wish to try to control the effects of the foreclosure by negotiating the transfer of the house and negotiating the borrowers’ responsibility for any balance due.

Where can we get help deciding whether we can afford the house?
 

A HUD financial counselor can help the borrowers review their financial situation so they can decide whether they can afford the house. The Supreme Court of Ohio has a list of HUD Approved Counselors. The Ohio Save the Dream website provides many tools to help homeowners, including a self-assessment to see if the borrowers would qualify for federal programs. The Borrower’s Worksheet lists important information to consider and documents to gather to help borrowers make their decision.

Where can we get legal advice?

An attorney can help the borrowers obtain information from the lender, navigate the legal process, negotiate the loan terms, and understand both their revised obligations. Ohio Legal Aid provides legal assistance to low-income Ohioans. Their website will help borrowers find local Legal Aid providers in Lorain County. 

How do we know if mediation is for us?

The information in the Civil Mediation FAQ’s, Client Mediation Preparation Guide, and Borrower’s Worksheet will help the borrowers decide if mediation is a good option for them. If the borrowers intend to come to mediation without an attorney, they should review all webpages for Civil Mediation, including the section Information for Attorneys. Also, the Supreme Court of Ohio has the useful articles “Foreclosure Mediation in Ohio: What You Need to Know” and the “Ohio Mortgage Help Workbook: A Tool to Educate Ohio Homeowners about the Foreclosure Process”.

How do we get our case referred to mediation?

The borrowers must comply with the instructions that come with the complaint and summons. If the borrowers fail to file an answer, the borrowers need to appear at the default hearing. After filing the answer, the borrowers can request that the case be referred to mediation by mailing a Borrower’s Request for Mediation to the Magistrate whose address is noted on the form.

What are the keys to success in foreclosure mediation? 

In addition to obtaining the professional assistance noted above, the borrowers need to act promptly and control those things that can be controlled; respond to the lawsuit, provide the information and save as much money as possible.
 

• Provide the Information. Bring the complete, updated Loss Mitigation Package to every hearing. A typical Loss Mitigation Package consists of the following information:
  

  
  1) proof of savings and income, two preceding months of all borrowers' bank statements / paystubs (if borrower is self employed, a profit and loss statement will be required) and all borrowers' other income sources (including, but not limited to, social security, alimony and pensions,
  
  2) an itemized list of monthly income and all monthly expenses,
  
  3) two preceding years of signed and dated tax returns,
  
  4) a hardship letter, and
  
  5) an original, current utility bill that shows the property address and the borrower's name (a bill downloaded from internet is usually not acceptable).
  

   

  
  Because the litigation process is long, a common problem is that the borrowers’ information becomes too old. Keep the information current throughout the process. An attorney can help you determine what information you may need from the lender. Also, the high number of foreclosure cases puts overwhelming demands on the court system. If the borrowers do not timely provide information or comes to the mediation unprepared, the case will be returned to the trial docket.
  
  1) The lender’s attorney will ask the borrowers to complete the lender’s Loss Mitigation Package to decide if the mortgage can be re-negotiated. To give enough time to allow review of the information, e-mail, fax or mail the completed package six weeks before the mediation. Always deliver documents to the attorney for the lender. If the forms say to send the package to a different department, send a copy to that department as well.
  
  

2) Update the completed Loss Mitigation Package monthly. The borrowers should send to the lender and the lender’s attorney the most recent pay stubs, bank account statements, and a current utility bill.

3) Keep a copy of all documents sent and know when and where the documents were sent. Though not required, getting “proof of mailing” from the post office helps you demonstrate the date and person to whom the documents were mailed. Obtain a fax confirmation sheet, if possible. Take good notes of conversations with the lender.


• Save as much money as possible: The borrowers can control how the money previously spent on the mortgage is saved or spent, and can control discretionary spending. The money saved will either help with down payments on a re-negotiated loan or help with the transition to a new residence.