There has been a lot of talk about whether mediation is an effective answer to the foreclosure crisis, but there hasn’t been a lot of information. RSI is trying to rectify that. As one step in understanding the effectiveness of these programs, RSI has pulled together all the publicly available statistics for foreclosure mediation programs in the US in Foreclosure Dispute Resolution by the Numbers. This document visually presents the available data for each program individually and comparatively across all programs. (more…)
Posts Tagged ‘foreclosure mediation’
This month, Resolution Systems Institute was invited to consult on residential mortgage foreclosure mediation at the Uniform Law Commission’s (ULC) Mortgage Foreclosure Committee meeting. The ULC is a non-governmental organization that drafts laws which states may voluntarily adopt in whole or use in part to create their own laws. The Committee is considering drafting a uniform law on foreclosures and is interested in including a provision on foreclosure mediation. RSI provided its Mortgage Foreclosure Mediation and Mitigation Models report, along with other materials, to the Committee prior to the meeting. I, as staff attorney at RSI, along with four program managers from foreclosure ADR programs around the country, addressed the Committee and forty interested observers from lending, borrowing, academic, and governmental sectors. The following are my opening remarks:
Greetings, members of the Committee and observers. Thank you for the opportunity to present you with our research and experience in foreclosure alternative dispute resolution programs. We represent a few of the 23 states, (more…)
The settlement was huge. Five major banks signed an agreement with 49 Attorneys General after the AGs instigated an investigation into the foreclosure crisis and the banks’ involvement in it. The result: an unprecedented $25 billion is flowing into states over the next three years to repair the damage the foreclosure crisis has caused to infrastructure, lending and homes. The settlement agreement earmarks $2.66 billion of this money for foreclosure prevention efforts, which could include increased housing counseling availability and more robust dispute resolution programs.
So where is the money going? (more…)
MEDIATION SESSION ELEMENTS
Ensure Mediators are Well-Trained
Some programs, fearing they will not be able to attract people to mediate, lower the requirements for training mediators. Instead of the normal 40 hour mediation training, they may require only 12 hours of training with an additional training in foreclosure law, or only require that the mediator be an attorney. This lack of training jeopardizes the mediation process itself, as people may not have the tools after 12 hours of training to manage such a complicated discussion. Connecticut’s program boasts a high settlement rate, in part because (more…)
PRE-MEDIATION SESSION ELEMENTS
Conduct Extensive, Personalized Outreach to Borrowers
Outreach to borrowers is key to getting participation in the program. Most people do not open their mail or answer the phone when they are in foreclosure. For those that do, legal notices should be written in simple language with a clear instruction for what borrowers should do next. Programs should find ways other than mail to help borrowers access mediation programs.