What alternatives to completing a foreclosure can mediation produce?

Mediation in a foreclosure context can produce a range of alternatives to a completed foreclosure sale. Common outcomes include a loan modification that adjusts the interest rate or term, a forbearance or repayment plan that lets the borrower cure the default over time, a short sale in which the property is sold for less than the balance owed with the lender’s agreement, or a deed in lieu of foreclosure that transfers the property to the lender in satisfaction of the debt. Which options are realistic depends on the value of the property, the borrower’s circumstances, and the lender’s position — and a mediator can help both sides assess those factors candidly and reach a resolution that avoids the cost and finality of foreclosure.