(i) If the mortgagee and mortgagor are able to reach agreement to renegotiate the terms
of the loan to avoid foreclosure, the agreement shall be reduced to writing and executed
by the mortgagor and mortgagee. If the mortgagee and mortgagor reach agreement after
the notice of mediation conference is sent to the mortgagor, but without the assistance
of the mediation coordinator, the mortgagee shall provide a copy of the written agreement
to the mediation coordinator. Upon receipt of a written agreement between the mortgagee
and mortgagor, the mediation coordinator shall issue a certificate of eligible workout
agreement if the workout agreement would result in a net financial benefit to the
mortgagor as compared to the terms of the mortgage (“Certificate of Eligible Workout
Agreement”). For purposes of this subsection, evidence of an agreement shall include,
but not be limited to, evidence of agreement by both mortgagee and mortgagor to the
terms of a short sale or a deed in lieu of foreclosure, regardless of whether said
short sale or deed in lieu of foreclosure is subsequently completed.
(j) Notwithstanding any other provisions of this section, where a mortgagor and mortgagee
have entered into a written agreement and the mediation coordinator has issued a certificate
of eligible workout agreement as provided in subsection (i), if the mortgagor fails
to fulfill his or her obligations under the eligible workout agreement, the provisions
of this section shall not apply to any foreclosure initiated under this chapter within
twelve (12) months following the date of the eligible workout agreement. In such case,
the mortgagee shall include in the foreclosure deed an affidavit establishing its
right to proceed under this section.