The Foreclosure Crisis : A Certified Civil / Circuit Mediator

1350 Words Aug 12th, 2015 6 Pages
As a certified Civil/Circuit Mediator, I mediated over 500 foreclosure mediations during the foreclosure crisis. Looking back at the many family experiences I witnessed and the consequences endured as a result of those experiences, there were many lessons to be learned. Three of the most important lessons are: (1) education; (2) moderation; and (3) exploration. Buyers will get more education on the lending process; banks will exercise more moderation in extending mortgage loans, and the government will explore more concrete ways to resolve financial crises instead of just extending a failed bailout plan.
EDUCATION: The most important change demanded to ensure we never experience the magnitude of foreclosures as was seen during the crisis is for Buyers and Sellers to better educate themselves about the home ownership process and procedures. During the crises it was discovered that the vast majority of buyers were unaware of the type of mortgage they had secured, let alone the terms and conditions they were required to perform. Many did not understand that those low payments were interest only and for a short term; and did not include any funds being applied to their actual mortgage balance. Some just sign ed on the bottom line, not even understanding that they were committing to paying a mortgage. These victims included senior citizens and uneducated home owners, many of whom owned their homes debt free. They were solicited for home repairs and presented papers they…

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