Can a foreclosure be resolved through mediation?

Yes. Foreclosure disputes — whether involving residential or commercial property — can often be resolved or restructured through mediation, and many jurisdictions have at various times operated foreclosure mediation programs precisely because a negotiated outcome frequently serves both the lender and the borrower better than a completed foreclosure. Through mediation, the parties may explore alternatives such as a loan modification, a repayment plan, a short sale, or a deed in lieu of foreclosure. Because foreclosure procedures and any mediation requirements are governed by state law and vary considerably from state to state, the specific options and any program requirements depend on where the property is located.