On Saturday, April 19, 2008, I was one of two guest speakers on the topic of Foreclosure Mediation, hosted by the American Center for Conflict Resolution Institute at http://www.accri.org. The teleseminar lasted for 1 hour and was a great success. How do I know? Because when the phone lines were unmuted for listeners to ask questions, there was an overabundance of them. This shows a speaker that everyone was paying attention and that people were excited about the information they heard.



James Cline of Foreclosure Mediator Training Systems was also a speaker at the teleseminar and I was honored to meet him for the first time. James has been working as a foreclosure mediator since 1995 and really knows his stuff. He offers a training school in Michigan and you can contact him for more information about the field by calling toll-free 877-631-8408.

Below are some of the topics James and I covered during the teleseminar:

What exactly is foreclosure mediation?

Foreclosure mediation is using a variety of different methods to negotiate with the mortgage company in an attempt to stop or prevent foreclosure procedures and allow the borrower(s) to stay in their home.

Why would a lender want to mediate a foreclosure?

It costs a lender $1,000s of dollars to proceed through a foreclosure. From attorney fees to file the paperwork to the Sheriff’s sale and everything in between, it can cost a lender upwards of $10,000 or more to foreclose on a piece of property. Then, the lender must resell the property and try to make a profit, which may or may not be advantageous. Therefore, the lender would much rather negotiate a settlement, which is why your services as a foreclosure mediator are so much in demand.

Why are there so many foreclosures today? Is this happening everywhere?

The reason for the amount of foreclosures today is due to the fact that people are unable to pay their mortgage payment. This could be caused by a variety of different reasons, from losing their job and the inability to find employment paying the same wage, or because of a bad mortgage loan such as “interest only" or “adjustable rate." The foreclosure rates are increasing everywhere. Even England and many other countries are having the same economic problems we are here in the United States.

Ref: U.S. Nationwide Foreclosure Statistics

http://www.foreclosures.com/stats/

Why is this a good time to get involved in foreclosure mediation?

Because the numbers are increasing at an alarming rate, many lenders are more than willing to work with mediators. This makes the job of a foreclosure mediator much easier.

Why can’t the borrower mediate their own foreclosure?

Because lenders would rather work through a third-party since a third-party is normally more neutral. A borrower would tend to be more biased during mediation and possibly withhold important data from the lender that could make or break the negotiation.

How does one become a foreclosure mediator?

Through a variety of methods; but the best place to start is by purchasing Victoria Ring’s book titled: An Introduction to Foreclosure Mediation which can be purchased online as an eBook or in printed form from her website:

Printed: http://www.713training.com/shop/cart.php'm=product_detail&p=67

EBook: http://www.713training.com/shop/cart.php'm=product_detail&relate=1&p=9

This book lays out all the basic information to get you started. Then, if you wish to pursue the field, you are encouraged to contact James Cline at 877-631-8408 for one-on-one personalized training.

Do you need a license to be a foreclosure mediator?

I do not know of any state law that requires a person to have a license to negotiate a workable plan between a borrower and mortgage company; however, state laws change all the time. Therefore, it is wise to check with Tanya Haggins at the American Center for Conflict Resolution for updated information. Her email address is thaggins@accri.org

How much time does it take to train to be a foreclosure mediator?

That depends on the background of the individual and the ability to comprehend the materials. Some people can purchase a book and within 2-3 weeks be making excellent money. Other people require more training and hand-holding. That is why my book, An Introduction to Foreclosure Mediation is so helpful. It outlines the entire business so you can make a more informed decision about whether to pursue this career without making a large investment.

How much money can one make as a foreclosure mediator?

That depends on many circumstances. My book covers the possible income a foreclosure mediator can earn but these figures fluctuate. If you are working for an attorney, the attorney may earn $1,000 for negotiating a foreclosure for a borrower and pay the non-attorney $500. Or, perhaps the negotiation could take from 5-6 weeks and hundreds of phone calls to complete. In this instance, the fee the foreclosure mediator could earn may be thousands of dollars. Or, some foreclosure mediators will base their fee on the amount of money being negotiated. But overall, a foreclosure mediator can earn as little as $4,000 per month or as much as $250,000 per year or even more.

How much time does it take to mediate a foreclosure case?

Every loan is unique and every one will require different periods of time to negotiate. Some loans can be mediated in 30 minutes while others may take 3-4 months. It depends on how fast the lenders and borrowers get back to you with the required information and your ability to reach the right person at the lending company to confirm a negotiation.

Can I run this type of business from home?

Absolutely! In fact, almost any business today can be run from home. All you need to get started in foreclosure mediation is a telephone, fax machine and a computer, which you probably already have.

References:

An Introduction to Foreclosure Mediation

http://www.713training.com/shop/cart.php'm=product_detail&relate=1&p=9

Advanced Training from James Cline, a Foreclosure Mediator

Phone: 877-631-8408

American Center for Conflict Resolution Institute

http://www.accri.org