Bankruptcy, Short Sale and Deed in Lieu in Foreclosure

A significant part of my neutral practice involves New Mexico foreclosure mediation, and I have written several posts recently regarding foreclosure.  See Foreclosure Mediation - Limitations and Concerns and How a Mediator Can Help in Foreclosure - More Thoughts.  Today, I'd like to look at a couple of particularly thorny issues that often arise in foreclosure mediation.  

First, it may be that the homeowner will need to consider whether he or she is even able to afford the home.  If the homeowner is not offered a loan modification that will

Foreclosure Mediation - Limitations and Concerns*

As part of my New Mexico mediation practice, I find I am increasingly being referred residential foreclosure mediation cases.  This is no accident as today, an increasing number of states and/or individual state courts are utilizing foreclosure mediation programs to manage the current "foreclosure crisis." Some states with such programs, either state-wide or local include: Connecticut; Delaware; Florida—various judicial districts; Kentucky—Jefferson County; Maine; Maryland; Michigan; Nevada; New Jersey; New Mexico—First and Thirteenth Judicial Districts; New York; Ohio—various counties; Oregon; Pennsylvania—various counties; Rhode Island—Providence. 

A recurring and thorny dilemma for mediators today is how to conduct and what are the proper parameters for a foreclosure mediation or settlement facilitation.