Foreclosure Mediation is when someone steps in on your behalf to try to stop foreclosure and negotiate a suitable arrangement with your lender for repayment of the mortgage. There are a ton of companies out there that market heavily claiming to Stop Foreclosure. Some are buyers and others offer Loss Mitigation services for a fee, typically equivalent one mortgage payment. There are also a number of non-profit agencies locally who provide this service as well. I would advise people to be very careful who they decide to work with to try and stop foreclosure on their home. Thankfully, the state has added the Foreclosure Mediation program for homeowners. Here is a summary from the CHFA website:

All lenders are required by law to attach to the front of the complaint that is served on the borrower a copy of the “Notice to Homeowner: Availability of Foreclosure Mediation” form and a “Foreclosure Mediation Request” form. In the mediation process, EMAP, HERO and the CT FAMLIES Programs will also be discussed with the borrower as alternatives to saving the borrower’s home from foreclosure. Inquires regarding Foreclosure Mediation may be directed to Roberta Palmer, Superior Court Operations at (860) 363-2734 or via e-mail at: roberta.palmer@jud.ct.gov.

I am not sure if the state will just be referring loss mitigation cases to the non-profits, such as 995-HOPE and Acorn or if they will be providing some of those services directly. I am guessing they will just be referring cases to the companies that already perform those activities.