Part 2 will discuss the actual dispute resolution process:
Mediations shally be scheduled 30 to 60 days after the owner elects to mediate. The foreclosure can not continue forward while the mediation is ongoing.
Mortgage holder must show note and assignments, mortgage and assignments, and documentation demonstrating default. I suspect if there will be litigation, it will be around these issues.
Owners needs to show proof of income, records if there is a dispute of default, records involving any loan modification of negotiations, info about anyone helping owner on curing the default, and proof of credit counseling/housing counseling. These requirements are substantially similar to what we do for bankruptcy purposes. Seeing an attorney before mediation is a good idea. Owners can be represented by an attorney for the mediation and can help you put together your documentation and create a budget. Furthermore, if the mediation is unsuccessful, a bankruptcy attorney can help you by giving you a plan B.
The first mediation hearing should be no more than 3 hours long. It can be extended for another 3 hours at mediator’s discretion.
The mortgage company can attend the mediation in person or by phone or teleconference. Mediator can delay sessions to get a live person. Large mortgage companies are required to have an office in Hawaii.
