Foreclosure Mediation Round-up

As foreclosure mediation become more and more prominent, I thought I would dedicate today's post to various, current, new articles.

Firstly, I would like to mention that tentatively an article of mine titled, Introduction to Foreclosure Mediation & Tips For The Mediator is set to be published in the California State Bar Association's magazine Trial Style. The article, as the title states, will be a brief introduction to the process and key terms a mediator should know and understand before venturing into this new field. Terms include: Reinstatement, Forbearance, Loan Modification, Reverse Mortgage and Short Sale among others.

The article includes tips on how to properly organize yourself as well as questions you might want to ask yourself when considering participating in a court connect foreclosure mediation program.

Onto the recent news:
When foreclosure looms, mediation offers lifeline
But court can’t help consumers who don’t seek the option.

Mediation could be a borrower’s last lifeline — negotiating revised loan terms and a household budget that could keep a family in its home. Another outcome could be to allow a borrower to walk away without ruined credit.

Jim Drubert, Montgomery County Court General Division administrator, said that despite dwindling resources and the recent retirement of the court’s only full-time mediator, an additional 50 foreclosure mediation cases could be handled.

Hall’s records show 62 cases directed to mediation by a judge. But of those, 40 home owners did not respond. Of the rest, 13 are pending mediation or in process, seven were settled with the lender prior to mediation or went to mediation, and two referrals were canceled.
Read the Full article [here]

Task Force Urges Foreclosure Mediation
MANATEE — Florida should require mediation between mortgage lenders and borrowers to help courts better manage the crush of foreclosure cases and improve borrowers’ chances of keeping their homes, a judicial task force is recommending.

...The task force did not say how much mediation would cost, but said lenders should foot the entire bill — a recommendation that exposed a division on the panel.

In a dissenting report, Haworth — joined by a circuit judge, a lawyer and a banker — argued that lenders won’t be able to afford to pay for tens of thousands of mediations and that non-indigent borrowers should pay half the cost as a matter of fairness.

Full article [here]

State (Nevada) closer to launching foreclosure mediation program
CARSON CITY – A mediation program to help stop the large number of foreclosures on Nevada homeowners should begin soon, a state official says.
Originally it was announced it would start in August but has been delayed to train the mediators. So far more than 450 requests for mediation from homeowners have been filed.

Full article [here]

Homeowners Avoiding State Foreclosure Mediation Program
The state’s hallmark foreclosure mediation program continues to have a high success rate for homeowners, but still relatively few people have chosen to participate in the program.
Statewide, 2,932 foreclosure mediation cases have been completed as of May 31, and of those 60 percent, or 1,771 cases, have reached a settlement that allows individuals and families to stay in their homes. Of those who stayed in their homes, 41 percent or 1,224 homeowners, received a loan modification from their lender, according to data from the state’s judicial department.
Full article [here]

Providence mayor signs rules to slow foreclosures
PROVIDENCE, R.I. — Providence Mayor David Cicilline has signed two city ordinances designed to protect tenants whose rental homes are foreclosed upon, and to banks to enter mediation before foreclosing upon homeowners.

Florida Court Wants Mandatory Mediation on Foreclosures
TALLAHASSEE, Fla. -- The Florida Supreme Court's residential foreclosure task force recommended Monday that all cases involving primary homes should be mediated and that judges should expedite cases dealing with vacant and abandoned properties.
The recommendations will go to the justices, who are looking for ways to help the court system cope with a flood of foreclosure cases caused by the national recession and Florida's housing bust. Florida has one of the nation's highest foreclosure rates. It was third at 3.4% behind Arizona and California in June.

Full article [here]

2 comments:

  1. Jeff, I'm a mediator in the UK. I'm interested to know who pays the mediators fee in these cases? Is it funded by the state, the mortgagee or the mortgagor?
    Phil

    ReplyDelete
  2. Phil,

    I believe in most cases both parties split it equally.

    -Jeff

    ReplyDelete

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