The idea of holding a conciliation conference for a loan modification or a foreclosure case is relatively new. Because of the large amount of foreclosures in Florida, a mediation is no longer required by law. A homeowner can request a mediation if they choose. However, this can get expensive because both their lawyer and the bank's lawyer will have to meet in person at the expense of the homeowner. In order to expedite the loan modification process, many lawyers are requesting conciliation conferences via phone instead.
How do I get a conciliation conference?
If you're a homeowner who has submitted a loan modification package to their bank and hasn't gotten a response, you may want to consider hiring a foreclosure defense attorney to help. A foreclosure attorney can not only present the loan modification package in a way that will encourage the bank to accept your offer, they can also request a conciliation conference with the decision maker at the bank. A homeowner alone will have almost no luck in trying to contact the bank and actually get in contact with someone who has the authority to make a decision on their loan modification.
What are the benefits of a conciliation conference?
During a conciliation conference, your lawyer can do a few different things. At this point, the bank should already have a copy of your loan modification package. Once on the phone with the bank, the lawyer can ask if the loan modification has been accepted. If it has not been accepted or if the bank offers a loan modification that the homeowner does not like, the attorney can ask to resubmit or try to negotiate the terms of the loan modification during the conciliation conference.
In a conciliation conference, your attorney will:
- Speak to a decision maker at your bank
- Negotiate direcly with the bank
- Get specific dates for what will happen next
- Ask "Will my client qualify for...?" and get quick answers to help you keep your home.
This can sometimes force a bank who has been putting off a loan modification to give the homeowner a direct answer that day. The attorney also has the option to tell the bank that the homeowner does not agree to the terms of the loan modification and your attorney can discuss options with you going forward.
Do I need foreclosure defense?
Keep in mind, that it is unlawful for an attorney to help you with your loan modification if they do not provide foreclosure defense. Submitting a loan modification package to the bank, whether done by the attorney or the homeowner will not stop the foreclosure process. If you are already served foreclosure, you will need a foreclosure attorney to prolong the foreclosure process while the loan modification is awaiting approval by the bank. Getting a loan modification from the bank without the help of an attorney is rare.
Make sure to do your homework before hiring an attorney to help with your foreclosure case. Use our helpful checklist and learn what to ask when shopping for a foreclosure defense attorney to handle your loan modification, foreclosure case, or request a conciliation conference.
