The new foreclosure mediation law (which was signed into law July 1, 2009) affects owner-occupied homes facing foreclosure.
Basically, a trustee cannot exercise the power of sale on a home unless the notice of default and election of sell includes contact information for a person of authority in order to negotiate a loan modification; contact information for a local housing counseling agency; and a form in which the homeowner elects to have (or not have) mediation.
The homeowner has 30 days (from notice of default) to complete the mediation form and return it via certified mail.
No further action on the sale may be taken until mediation is completed.
The cost is $400 - split by the homeowner and the lender.
More information is available here.
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