A promising new program available to struggling debtors in Wisconsin is known as mortgage modification mediation. Just as its name suggests, this program involves a neutral 3rd party who mediates between the debtor and the lender to negotiate new terms for a lower, more affordable monthly mortgage payment.
To qualify, the debtor must be in Chapter 13 Bankruptcy
. The mediation process allows the debtor to explain his or her side of the story, illustrate the validity of their financial troubles, and appeal for cooperation and understanding on the part of the lender. The benefit for the lender is that they will get true clarity on the debtor’s financial position and a commitment from the debtor that they will be paid the agreed amount in priority over any other unsecured creditors