Foreclosure Diversion Program
Homeowner Frequently Asked Questions
What is the Foreclosure Diversion Program?
The Foreclosure Diversion Program has been set up to assist a homeowner/borrower whose owner-occupied residential property is the subject of a mortgage foreclosure action. The property must be located in the State of Maine and be the homeowner’s primary residence and have four or fewer units. Through this program, the homeowner may have the chance to attend an informational session designed to guide the homeowner to complete required forms, meet with community resources for individualized assistance (where available), and meet with the lender and a mediator to try and reach an agreement.
What is mediation?
Mediation is a flexible, informal process during which parties agree to work together with the assistance of a trained neutral third party, the mediator, to explore their interests and generate options for resolving their dispute. The mediator helps both sides to communicate with each other and assists the parties in clarifying and expressing their views. The mediator has no power to decide the case or impose a resolution. In mediation, any settlement is voluntary. The parties control the outcome.
Who are the mediators?
The foreclosure mediators are professionals trained by the Foreclosure Diversion Program.
How do I qualify for foreclosure mediation?
Certain foreclosure actions filed after December 31, 2009, are automatically eligible for mediation when the homeowner files an appearance, answer, or request for mediation within 20 days of being served with the foreclosure summons and complaint. These certain foreclosure actions must be residential properties that are the primary residences of the homeowners and have four or fewer units.
Foreclosure actions filed on or before December 31, 2009, that have not yet resulted in a final judgment as of January 1, 2010, may qualify for foreclosure mediation if a homeowner requests by motion that the court order mediation and the court finds that there are resources available to perform mediation and that mediation will not unduly delay the proceedings or result in prejudice to the lender, provided the residential property that is being foreclosed upon is the primary residence of the borrower and has four or fewer units.
Am I required to go to foreclosure mediation?
As the defendant/homeowner, you have the option of asking the court for a waiver of mediation. Waivers will be granted only after the court is satisfied that the homeowner understands the consequences of waiving mediation. Requests for waiver must be filed with the appropriate court either before or upon receipt of a notice scheduling mediation. You must file the completed form with the court and send a copy to the lender’s attorney.
Do I need a lawyer to participate in the Foreclosure Diversion Program?
No, you do not have to be represented by a lawyer to participate in this Program.
Do all borrowers who signed the mortgage need to attend the mediation session?
Yes, all borrowers must be present at the mediation session; for example, if a husband and wife signed the mortgage then both will need to be present for the mediation.
Is there an application fee?
There is no application fee for this Program. The Program is funded by a fee charged to lenders who file foreclosure actions in Maine courts.
How do I know what to expect?
Shortly after the filing of the foreclosure action, you may receive a notice from the court requiring you to attend an informational session. At this informational session, important information about what is expected of you at mediation, the availability of community resources, and, in some limited instances, on-site advice about your particular circumstances may be available. IT IS VERY IMPORTANT THAT YOU ATTEND THE INFORMATIONAL SESSION IF YOU ARE ORDERED TO ATTEND.
Note that not all courts will require defendant/homeowners to attend an informational session.
If I am required to attend an informational session, what do I need to bring to it?
When you were served with the papers starting this lawsuit, you also should have received financial forms or a questionnaire seeking financial information. You should bring copies of those forms with you to the informational session. If you are able to begin completing the forms or can gather supporting documents before the session, you should do so and bring the partially/fully completed forms with you.
What do I need to bring to the informational session?
When you were served with the papers starting this lawsuit, you also should have received financial forms or a questionnaire seeking financial information. You should bring copies of those forms with you to the informational session. If you are able to begin completing the forms or can gather supporting documents before the session, you should do so and bring the partially/fully completed forms with you.
What do I need to bring to the mediation session?
At the informational session, the presenter will provide you with information about what you need to bring to mediation. (For example, see Form FDP-02B) Additionally, a foreclosure mediation scheduling order will be sent to you and it will list the information that you will be required to submit in advance to the lender's attorney and the court, and bring to mediation.
Some information that may be required is:
- proof of income, for example, a current pay stub;
- list of expenses;
- copies of any completed application(s) for mortgage or financial assistance; and
Any information requested by (and provided to) your lender relating to the mortgage that is the subject of the foreclosure action.
Where will the mediation session be held?
Whenever possible, mediations will be held at courthouses. However, upon advanced agreement of the parties, mediation sessions may be scheduled at other locations.
You will receive notice of when and where your mediation will be held when you receive the foreclosure mediation scheduling order from the court.
Your mediation may not be held at the same court in which the foreclosure action was filed against you. The Foreclosure Diversion Program has been implemented across the State by region with specific courts designated to hold mediation. Information on which courts have been designated to hold mediation can be found here.
What are my responsibilities in mediation?
Both parties are expected to make a good faith effort to try to find a solution. A failure to make an effort (for example, not bringing the right paperwork) may cause the court to enter judgment in favor of the lender, assess attorney fees, or impose other penalties.
What if I have a scheduling conflict with my mediation date?
If you know that you are unable to attend mediation on the date you are assigned, you may use the court form “Motion to Continue Mediation in Foreclosure Action” to notify the court of your conflict. You must file the completed form with the court and send a copy to the lender’s attorney. Do not assume that your continuance will be granted. The court has the ultimate authority to decide.
Does this mean I will not lose my house due to foreclosure?
Participation in the Foreclosure Diversion Program does not stop the foreclosure, but it does prohibit the filing of certain motions during the time you are preparing for and participating in mediation, to allow the parties a chance to work out a solution.
Do I have to respond to the big packet of foreclosure information that I received with the complaint?
You are still obligated to respond to the foreclosure action and may be at risk of losing your property to foreclosure. You may answer the foreclosure complaint by using the one-page form approved and developed by the Department of Professional and Financial Regulations, Bureau of Consumer Credit Protection, and before mediation you will need to gather and submit the financial information that the lender has requested of you. This information must be submitted to your lender’s attorney and to the court.
Where should I direct questions about the Foreclosure Diversion Program?
If you have questions or suggestions about the Foreclosure Diversion Program, please contact: Laura Pearlman, the Foreclosure Diversion Program Manager at (207) 822-0706 or by email FDMP@courts.maine.gov.
Please note that Judicial Branch staff cannot provide legal advice or specific assistance related to individual foreclosure actions. They are happy to answer questions about the process, but cannot provide substantive help to either party.
If you need legal advice please review the Foreclosure Prevention Resources page on this site.
