Foreclosure Mediation Unit Pilot Program


Details of the Program

  • Applicable Rules.  The Program shall follow the general procedures outlined herein. For guidance resolving any other issues which may arise, Local Bankruptcy Court Rules 9072-1 through 9072-9 of the Court shall control. 
  • Case Selection.  The Court shall identify and select cases to include in the Program based upon the Court’s expectation that the parties would benefit from mediation. Cases selected to participate in the Program should meet the following minimum requirements:
(a)    The property is an owner-occupied property;
(b)   The property is the primary residence of the Debtor; and
(c)    The Debtor is the “borrower” on the mortgage loan.
 
The Court may establish other minimum criteria in its discretion and the final decision shall rest with the Court to determine the appropriateness of each case for mediation.
  • Mediation Order. Once a case has been selected by the Court, an order directing the parties to participate in the Program shall be issued containing the time, place and location for the mediation conference. Mediation conferences will be scheduled on Tuesdays and Thursdays, commencing at 9:30 a.m. or 1:30 p.m.   Attendance by all parties at the mediation conference is essential and the Court will attempt to accommodate Debtor’s and Creditor’s requests related to scheduling. A written request to the Mediator is required to reschedule the mediation conference. The Mediator will attempt to accommodate all reasonable requests to reschedule the mediation conference.
  •  Initial Telephonic Conference.  After issuance of the Mediation Order, but no later than fourteen (14) days after receipt of notification of appointment, the mediator will conduct an initial telephonic conference (“ITC”) with counsel of record for the parties (or the parties, where appearing pro se) to: (1) confirm the date and place of the mediation conference; (2) discuss the procedures that will be followed; (3) identify who is expected to attend the mediation conference; (4) review the material or exhibits that should be provided before the mediation conference; and (5) address any other relevant issues or matters.
  • Information Exchange.   The parties shall exchange and provide to the mediator completed Information Forms no later than ten (10) days after the ITC. The Information Forms shall be considered Submission Materials under Local Bankruptcy Court Rule 9072-8(c). On the form, the party may specify any additional financial or other documentation reasonably required from the opposing party to make an informed decision regarding the mortgage, and the opposing party must provide the additional information within ten (10) days following receipt of the form.  The mediator may disallow any clearly unreasonable requests without prior objection.  Information Forms shall not be filed with the Court and will be considered confidential. If a party is unwilling or unable to produce the information requested on the form or by the other party, the party must submit a written explanation or objection within the time specified herein for production of the information. Upon receipt of notice that a party has failed or objected to providing requested information, the mediator may direct the party to submit additional information or direct that the mediation proceed without any further information exchange.  The mediator may conduct a conference, either telephonically or in person, to resolve disputes concerning the information exchange. No motion concerning information exchange disputes will be considered by the Court unless a statement of the moving party is attached certifying that after personal consultation and sincere efforts to do so, the parties have been unable to resolve the matter. 
     
  • Mediation Conference.  If the parties have complied with the rules and disclosures, the mediation conference shall proceed at the time and place provided in the Mediation Order. Individuals with full and complete settlement authority are required to be present in person at the mediation conference. The mediator has the discretion to allow exceptions to this rule based upon a written request made by a party in advance of the mediation, and good cause shown. All parties may be represented by an attorney.  The mediator shall have the final discretion as to which individuals may participate in the discussions during the mediation conference.   While the parties will be ordered to participate in mediation, the parties shall not be required to reach an agreement. Any mediation agreement is voluntary.
  • Memorandum of Understanding.  If a voluntary agreement is reached, the mediator will assist the parties in memorializing the agreement and the parties may acknowledge the terms in the Memorandum of Understanding. Such terms may include temporary or permanent loan modification, loan refinance, interest rate adjustment, forbearance, short sale, deed in lieu of foreclosure, or other surrender of the property. The parties shall be responsible for preparing any further documentation necessary to effectuate the agreement. 
  • Report of ADR Conference.  At the conclusion of the Mediation Conference, the mediator shall promptly prepare a Report of ADR Conference (the “RAC”), which will be filed with the Court.  The RAC shall indicate the outcome of the mediation and shall be signed by the mediator. If no agreement is reached, the matter shall be referred back to the Court for further proceedings. 

 

 

Contact Information:

Foreclosure Mediation Unit
P.O. Box 877906
Tempe, Arizona 85287-7906
foreclosuremediationunit@asu.edu



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