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Mediation law will help modify loans

Posted in Mortgage Mediation

On July 22, 2011, the state of Washington enacted the foreclosure mediation program, RCW 61.24.130. Among other things it states: … the parties have a duty to mediate in good faith and that failure to mediate in good faith may impair the beneficiary’s ability to foreclose on the property …. [T]he mediator must require the participants to consider … [t]he net present value of receiving payments pursuant to a modified mortgage loan as compared to the anticipated net recovery following foreclosure …. [and] [a]ny affordable loan modification calculation and net present value calculation….  If a servicer fails to approve a modification of a loan, I invoke this law and proceed to mediation. Read the full text of RCW 61.24.163. A request for mediation will stop a foreclosure. Only a non-profit housing counseling agency or an attorney can file a...

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JR, am I going to lose my house?

Posted in Mortgage Mediation, Mortgage Modification

11-21-11 From NG: Dear James, My daughter was here this evening  and we were discussing how our loan modification is going right now, explained to her how mediation works. She is so worried that we’ll lose the house. I told her not to worry and not to lose hope because if the mediation fails then we’ll file Chapter 13. She is so worried because she’s hoping that once this loan modification is all finalized she’ll move in with her husband and their 19-month old son. It’s better if they move in because our grandson wants to stay with us all the time. It will be economical for them and for us because we’ll split the mortgage payments so Alex and I can start saving for our retirement. I explained to her that Chapter 13 won’t change the existing term...

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