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send the relevant paperwork to the homeowner and the mediator. The Notice from Department
of Commerce lists the required documents for both borrower and beneficiary. Also, the
mediator will notify the borrower and the beneficiary about the specific documents they need
to provide. A housing counselor or attorney can help you to prepare these documents.

What paperwork should I be sending and receiving?
The Notice from Department of Commerce lists the required documents for both borrower and
beneficiary. Also, the mediator will notify the borrower and the beneficiary about the specific
documents they need to provide.
Generally, the homeowner should, at a minimum, provide the mediator and the beneficiary with
a detailed financial statement that includes:
• proof of income, including your most recent paystubs, public benefit award letter, or a
profit and loss statement if you own your own small business;
• documentation of your debts and other obligations;
• last 2 years of tax returns.

Generally, the beneficiary should, at a minimum, provide the mediator and the homeowner
with:
• the loan balance;
• an itemized list of fees and charges;
• payment history;
• net present value or other loan modification information.

After submitting the required documents, the beneficiary may notify the borrower of additional
documents that are needed to complete a loss mitigation review. It is best to comply with any
requests for documentation in a timely manner.

What if mediation does not work?
Mediation does not require beneficiaries and homeowners to enter into a loan modification or
any other agreement. Mediation simply provides a neutral setting for the beneficiary and the
homeowner to discuss alternatives to foreclosure. Even a “successful” mediation may not result
in a modification of your loan or the preservation of your home.

Within 7 business days of the mediation’s conclusion, the mediator will issue a written
certification identifying the outcome of the mediation and determining whether the parties
(borrower and beneficiary) mediated in good faith. Once the mediator issues that certification, if
no agreement was reached between the homeowner and the beneficiary, the beneficiary can
proceed with the foreclosure and record the Notice of Trustee’s sale.

If the mediator determines that the beneficiary did not participate in mediation in good faith
and certifies it so on his/her certification, the homeowner can file a lawsuit in court to stop the
beneficiary from proceeding with the non-judicial foreclosure. If this happens to you, contact an
attorney immediately. For referrals to an attorney, call 1-800-606-4819.

January 2020 | Page 34