1. Modification/Settlement

A. Forgiveness of debt

B. Forbearance of debt—put on end of loan w/out penalties & interest

C. Refinance

D. Lower payment

E. Lower interest rate

F. Extend time of loan

G. Extend amortization

H. Reinstate old loan (pay ½ dn payment and payments)

I. Repayment (100%)

J. In house mod

K. Reverse mortgage (only if 62+)

L. Possible even after unsuccessful mediation

 2. Cash for Keys ($3k+ and walk–Repossession)

A. Deed in Lieu of Foreclosure

B. Short sale

C. $0 & walk

D. Deed for Lease

E. Voluntary surrender of house

 3. Continue for 2nd Mediation (Can have 3rd+, but others’ consent req’d)

 4. Bad Faith Certification (On either side)

 A. Grounds for Complaint if bank does, & can use to block sale

  • (1) Docs provided late
  • (2) Failure to pay for Mediation
  • (3) No show at Mediation
  • (4) Bene’s rep not have 100% authority

5. No Settlement & Foreclosure Continues (Get Mediation Completion Certificate—25% of the time)

6. No Mediation Held

  1. Reached agreement before Mediation
  2. Borrower deemed ineligible or Bene exempted
    • Mediator can determine after referral
  3. Borrow w/draws from Mediation
  4. Borrower files Bankruptcy