Scam artists take advantage of desperate people, and the problems many overstretched homeowners face provide just such an opportunity. Last time, I wrote about the possibilities and challenges in using mediation to help avoid a foreclosure action, in order to serve the interests of both the homeowner and the holder of the loan. It’s important to remember, however, that an unscrupulous person or company could offer to serve as a mediator (a neutral third party) or even an advocate on behalf of the homeowner.
Whenever you choose a mediator, you should ask questions about the person’s qualifications, payment requirements, and the process the mediator uses. In the context of home foreclosures, it’s important for a homeowner to understand the basics, whether approaching the bank alone or with assistance. A good place to start is the State of Connecticut Department of Banking’s helpful article, “Avoiding Foreclosure”, on its website, www. ctgov.dob.