What happens at a Conciliation Conference?
Written by Calisha Francis
Conciliation is a non-mandatory phone conference between the attorneys
of the lenders and borrowers, held in order to reach a settlement. It
does not use an independent mediator, has no additional costs, and does
not require the borrowers to go to financial counseling. Best of all,
conciliations is much more flexible with a homeowner's' financial
situation and gives Foreclosure Defense Attorneys more opportunities to
create a better settlement.
Conciliation has become the preferred method of loss mitigation negotiations
as it is a less expensive avenue and just as effective as a mediation.
It can also help to speed up the loan modification process. Conciliation
conference is beneficial to Homeowners as you will have an opportunity
to communicate directly with your lender to discuss your current financial
situation and engage in negotiations to help you keep your home.
In a conciliation conference your attorney will have the opportunity to
speak to the decision maker with at the bank. You will be able to negotiate
directly with the bank in real time. It is easier for you to get specific
dates for what will happen next and learn what specific documents they
may need in order to complete the processing of your modification request.
Many times, a homeowner who has submitted a loan modification application
to their bank will wait weeks, sometimes months for a response. A homeowner
alone will have almost no success in trying to contact the bank for answers
on their submitted application. It is even more difficult to reach someone
at the bank who has the authority to make any decisions regarding their
loan modification. An experienced foreclosure attorney can help with expediting
with this process.
In the course of the conciliation conference, your lawyer can find out
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. Your attorney
can ask, "Will my client qualify for...?" and get quick answers
to help you save 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.
Homeowners who enter conciliation with legal representation have seen much
higher success rates than those that go without. You can be at a serious
disadvantage when faced with an opposing counsel who will not be motivated
to negotiate in their best interest. Seek the help of an experienced foreclosure