Lets taLk: Foreclosure Mediation a Win-Win solution

A win-win solution: Foreclosure mediation benefits all of the involved parties: Lenders and servicers avoid a long and costly foreclosure process Most homeowners in mediated cases get to keep their homes. those for whom paying a mortgage is not a sustainable option also benefit by negotiating a graceful exit in how and when they move out. Neighbors and taxpayers benefit by reducing the number of vacant homes and stabilizing property values and tax revenue. Foreclosure prevention counselors gain an extra tool to work with lenders. 2. the program would be funded through fees paid by lenders participating in the program. 3. Lenders would include a notice of the homeowners right to participate in a mediation conference along with any notice of intent to foreclose. 4. the mediation program would work to reach an agreement between the lender and the homeowner. When the two sides are unable to reach an agreement, the mediation program issues a report that includes whether the lender made a good faith effort.

Foreclosure mediation programs prevent unnecessary foreclosures by bringing lenders and homeowners together for a face-to-face conversation about about the homeowners situation and available options . around the country, more than 70 percent of mediated cases reach a settlement --usually one that means a family stays in their home.
require lenders to engage in mortgage mediation. Local municipalities are not able to mandate mediation the way a state law could. Instead, it must be set up through the courts where there is judicial foreclosure, as in Pennsylvania, or by incentivizing the participation of the mortgage company, as in Rhode Island. In Minnesota, cities could provide an incentive for lenders to participate in mediation programs by charging a penalty when lenders register a vacant house they obtained through foreclosure without engaging in good-faith mediation. some municipalities currently operating foreclosure mediation programs are: Cook County, IL; santa Fe, NM; Philadelphia and Pittsburgh, Pa; Providence, Warwick, and Cranston, RI; Milwaukee, WI.

5. at the time the property owner registers a vacant building with the city, the property owner would pay a penalty if the property had How A locAl Foreclosure become vacant due to a forecloMediAtion ProgrAM could sure without and a good faith work effort at mediation. 1. a Mediation Coordinator would stAte And locAl MediAtion be appointed by the city. the ProgrAMs: Coordinator could be housed in Local or statewide foreclosure a department of the City, or by a mediation programs exist in 24 non-profit partner entity. states. state governments can

For More inForMation: Kate Hess Pace | 612.655.0203 HessPace@isaiaHMn.org