Many states require lenders to participate in foreclosure mediation before they can sell your home. Learn which states have mediation programs, how they work, and how to use mediation to negotiate a resolution.
Foreclosure mediation is a structured negotiation process between you and your lender, facilitated by a neutral third-party mediator. The goal is to reach a mutually acceptable resolution — typically a loan modification, repayment plan, short sale, or deed in lieu — that avoids foreclosure. In states with mandatory mediation programs, the lender cannot proceed to foreclosure sale without first participating in mediation.
In mandatory mediation states, the lender must send a representative with settlement authority to the mediation. This is one of the few times the lender is legally required to negotiate with you face-to-face.
| State | Program Type | Key Features |
|---|---|---|
| Nevada | Mandatory | HB 356 foreclosure mediation; must elect mediation within 30 days of NOD |
| Washington | Mandatory | Foreclosure Fairness Act; beneficiary must provide notice of mediation right |
| California | Limited | HBOR requires servicer contact before NOD; non-judicial; no statewide mandatory mediation |
| New York | Mandatory | Foreclosure settlement conferences in all residential cases |
| New Jersey | Mandatory | Foreclosure mediation in all residential cases; Judiciary Foreclosure Mediation Program |
| Florida | Mandatory | Managed Mediation Program in all residential foreclosure cases |
| Maryland | Mandatory | Foreclosure mediation in all owner-occupied cases; must request within 25 days |
| Illinois | Mandatory | Foreclosure mediation in all residential cases; county-level programs |
In mandatory states, you receive a notice of your right to mediation. In voluntary states, you must proactively request it. Deadlines to request are typically 15-30 days.
The mediator and lender will need to see your income, expenses, hardship documentation, and a proposed resolution. Preparation is key to a successful outcome.
Typically held via phone or video conference. Both sides present their positions. The mediator facilitates negotiation. The lender's representative must have settlement authority.
If agreement is reached, the foreclosure is resolved. If not, the lender may proceed — but the mediation creates a record that can be used in later legal challenges.
Find out if mediation can help you negotiate with your lender and save your home.
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