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Just Court ADR

The blog of Resolution Systems Institute

Posts Tagged ‘mortgage’

Foreclosure Mediation Upheld against Constitutional Challenge

Heather Scheiwe Kulp, August 23rd, 2012

For the second time in as many years, a foreclosure mediation program has faced a constitutional challenge. This time, the 153,000-person city of Springfield, Massachusetts, will be allowed to move forward with a foreclosure mediation program for residents.

The first was a constitutional challenge from Wells Fargo against the Nevada Supreme Court Foreclosure Mediation Program. Wells Fargo claims the mediation program itself violates the due process clause. More specifically, Wells Fargo claims a provision that allows sanctions for non-compliance, violated the U.S. constitution. Nevada’s mediation program allows judges to issue sanctions if the lender does not participate in good faith. Sanctions may include an ordered write-down of the mortgage. Wells Fargo says this violates the contracts clause and the takings clause by interfering with a contract provision and appropriating private real and personal property for public use without compensation. The court (more…)

Uniform Law Commission and Foreclosure Mediation

Heather Scheiwe Kulp, June 12th, 2012

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…)