↑ Return to Mediation Services

Mortgage Foreclosure Mediation

At the Mediation Center of the Pacific, impartial mediators help borrowers and lenders negotiate an agreement on the issues for the retention or disposition of a property.



  • The parties schedule a mediation session at a time convenient to both parties.
  • Mediation sessions are about 3 hours each and address issues the parties wish to discuss.
  • The mediation sessions are private and confidential.
  • At the scheduled mediation session, the parties meet with a mediator who has specific mortgage foreclosure subject matter knowledge.
  • Mediators do not “take sides,” issue decisions, or promote solutions. Instead, they work with the parties to open communication and assist them in coming up with their own ideas, plans, and solutions appropriate to their needs.
  • The mediator will talk to both the lender and the borrower together to review the issues they would like addressed, and then they will meet with each party privately to discuss concerns and ideas to reach agreements on the issues.
  • At the end of each session, the parties are brought back together to review progress and memorialize agreements.
  • If the parties reach an agreement, it is written in plain language to incorporate into either a loan modification agreement or a relinquishment plan.
  • If the parties do not reach an agreement and this was a court ordered mediation, then the parties will return to court. If this is a nonjudicial foreclosure under Act 48, please see the State of Hawaii’s DCCA website.



  • The specific terms of a loan modification (HAMP, internal) can be negotiated as well as what will happen if there is a redefault.
  • How and when the borrower will move out if the agreement reached during mediation is for a relinquishment plan.
  • The condition the borrower will leave the property in the case of relinquishment.
  • The details of how a short sale, deed in lieu, or cash for keys (relocation assistance) will be handled between the parties.
  • The details of a deficiency judgment (if allowed), consent judgment or how the parties will next proceed.



  • Mediation saves time and money by helping the parties resolve the case themselves, instead of waiting for the overburdened and costly court foreclosure process.
  • Creates a safe environment where both parties can communicate their concerns and interests.
  • Creative options from both parties can be explored.
  • As agreements are voluntarily, the borrower is more likely to comply with its terms, resulting in less damage to the property and lower recidivism.
  • Mediation is confidential and private. Agreements cannot be used as legal precedents.
  • Mediation allows for both parties to have more control and flexibility, and the agreements can be tailored to the parties’ specific needs.
  • There is nothing to lose. If an agreement is not reached, the parties can still go to court.
  • Mediation helps maintain the relationship between the borrower and the lender.
  • As mediation is private, it preserves the parties’ reputation in the community.



Call the Mediation Center of the Pacific at 521-6767 between 8:30 a.m. and 4:30 p.m. on Monday through Friday and ask for the Client Services Department.  A Client Services representative will assist the parties in scheduling a mediation session on a day and time that is convenient to them.

Generally the first mediation session is scheduled within two weeks. However, if you have an upcoming court date, the Client Services Department will strive to schedule the session sooner.



The Mediation Center charges each party $300 per 3 hour session for mortgage foreclosure mediations.



  • The Mediation Center’s Client Services staff will call each party to review the current status of the loan and will review with each party which documents will be needed prior to mediation.
  • Organize all of your documents and paperwork.
  • Be prepared to share information.
  • Be prepared to listen and be open to new suggestions and creative ideas.
  • Be prepared to discuss what your interests, concerns and options are.

As the borrower, you should make an appointment as soon as possible with an HUD approved housing counselor. The counselor will review your financial situation with you and help you put together the documents that you will need to give to your lender and bring to mediation if you are applying for a loan modification or are relinquishing your property.



  • The Mediation Center’s mediators have specialized subject matter knowledge and have gone through extensive training on Act 48 and judicial foreclosures.