I have previously written about my work as a foreclosure mediator. See Foreclosure
Mediation - Limitations and Concerns and How
a Mediator Can Help in Foreclosure - More Thoughts. A common defense raised on behalf of homeowners in mediation
is that a Bank has breached either HAMP guidelines or the duty to bargain in good faith for certain action taken in processing a loan modification request, or in proceeding with foreclosure while a loan modification application is pending. As I've noted before, a couple of state court case around the nation have indicated a willingness to entertain claims concerning a duty to try to settle foreclosure cases, or to exercise a duty of care in processing a loan modification request. See Foreclosure
Mediation, supra. However, recently the New Mexico Court of Appeals appears to have rejected this line of foreclosure defense.
