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Archive for the ‘Foreclosure Mediation’ Category

Ohio’s Portage County Launches the Nation’s First ODR Program for Foreclosure Mediation

Nicole Wilmet, November 25th, 2019

On November 18, 2019, Ohio’s Portage County launched the country’s first foreclosure mediation online dispute resolution (ODR) program. The program, developed under the guidance of Portage County Common Pleas Court Judge Laurie J. Pittman, uses Court Innovations’ Matterhorn software. A press release for the program indicates that one of the goals of the program is to make the process more accessible to the public by allowing parties to work on their cases remotely. The program’s mediator Benito Antognoli explains that prior to the launch of the online program, the first in-person mediation session between borrowers and lenders often only lasted about 20-30 minutes and required the parties to attend subsequent mediations. Most often, the brevity of this first meeting stemmed from borrowers being unable to fully respond to forms from the lender’s attorney since, due to the nature of the forms, they do not have the required documentation with them. As Antognoli highlights, the difficulty of having to make accommodations and find time to attend additional mediations is often a substantial inconvenience for both parties.

However, with the new ODR program, borrowers and lenders are now able to complete this process remotely. As Antognoli describes, once a borrower has opted-in to the program they will receive an email that invites them to the platform. From there, the lender’s attorney will request various documents from the borrower, which the borrower can now submit online at their convenience. Additionally, the online platform also now allows Antognoli to be involved during the entire process and communicate with the parties regularly. Like the in-person program, the entire online process is intended to take about 90 days from start-to-finish. Ultimately, the press release notes that Judge Pittman’s hope is to expand the use of online mediation and offer ODR programs to parties involved in other types of civil disputes.

Those interested in learning more about the program or accessing the court’s press release, should please contact Antognoli at 330-298-3233.

Happy Resolution Systems Institute Day!

Nicole Wilmet, July 11th, 2019

Today we are celebrating Resolution Systems Institute Day!

On this day last year, during our summer staff gathering in Rockford, Matthew Flores presented RSI’s Executive Director Susan Yates with a Proclamation signed by the City of Rockford Mayor Thomas McNamara declaring July 11, 2018 as Resolution Systems Institute Day!

In 2013, RSI received a grant from the Illinois Attorney General to incubate foreclosure mediation in Illinois through August 31, 2018. Over the course of five years, these programs served nearly 5,000 homeowners, and kept 1,100 people in their homes. In 2018, RSI’s Director of Research Jennifer Shack completed her final evaluation of the programs, which you can read here. RSI is pleased to have had the opportunity to work with the 17th Judicial Circuit and thanks Mayor McNamara for making July 11th a day we will always remember!

Matthew Flores, Assistant City Attorney for the City of Rockford, presents Susan Yates, RSI’s Executive Director, with a proclamation declaring July 11, 2018 as Resolution Systems Institute Day!

Update: New Jersey Foreclosure Legislative Package Signed Into Law

Nicole Wilmet, May 24th, 2019

In March, I reported on a package of ten bills being considered by the New Jersey legislature that would reform the state’s residential mortgage foreclosure process. The bills were built on recommendations from a Special Committee on Residential Foreclosures that examined the state’s foreclosure practices, policies, court rules and legislation and made suggestions for improvement. Since March, a handful of the original ten bills underwent slight modifications and currently, one of the initial bills is still under consideration. At the end of April, New Jersey Governor Phil Murphy signed a modified nine-bill package into law. Notably, one of the bills in the package codifies and makes permanent the state’s Foreclosure Mediation Program. Additional information about the other bills in the package can be found here.

New Jersey Legislature Tackles State’s High Foreclosure Rate

Nicole Wilmet, March 21st, 2019

Despite employing a number of practices in response to the mortgage crisis in 2008, New Jersey has had one of the highest foreclosure rates among all states since 2015. In a continued effort to address this issue, New Jersey Chief Justice Stuart Rabner established a Special Committee on Residential Foreclosures in 2017 to review current practices, policies, court rules and legislation and develop suggestions for reform. Last year, the Committee released its report, which summarizes the history and current state of foreclosure in New Jersey and includes recommendations for reform. Towards the end of their report, the Committee notes that not only do unresolved foreclosures lead to thousands of cases remaining on court dockets, but they also depress property values, burden municipalities and reduce tax revenues.

Building on the recommendations from the Committee, the New Jersey legislature is currently considering a ten-bill package that would reform the residential mortgage foreclosure process. Introduced at the end of January, this package of ten bills seeks to expedite the foreclosure process, decrease the amount of time foreclosed properties remain on the market, and make the foreclosure mediation program permanent. The following chart summaries each bill being considered.

Bill Number

Summary

S3411

Recommends revising the Fair Foreclosure Act (“FFA”) to require that notices of intention to foreclose are filed at least 30 days (but no more than 180 days) before foreclosure commences. Additionally, the bill also requires that these notices also include a notice to homeowners that they are entitled to housing counseling through the Foreclosure Mediation Program.

S3412

Requires the Department of Community Affairs to create a database with an interactive map that details the foreclosed properties in the state. To fund this database, this bill also establishes a $30 fee that would be collected when deeds are recorded.

S3413

Modifies the foreclosure process to expand the definition of what constitutes a vacant and abandoned property and requires that sales of foreclosed properties occur within 60 days of a foreclosure judgment.

S3414

Allows all common interest community associations to record liens for unpaid assessments.

S3415

Requires creditors and their in-state agents to file their contact information with the Superior Court.

S3416

Clarifies that the New Jersey Residential Mortgage Lending Act also applies to any out-of-state person involved in residential mortgage lending in the state.

S3417

Requires anyone acting as a mortgage servicer to obtain a license from the state Department of Baking and Insurance.

S3418

Reduces the statute of limitations for residential mortgage foreclosure actions under the FFA from 20 years to six years from the date on which the homeowner defaulted.

S3464

Focuses on expediting residential mortgage foreclosure proceedings. Under this bill, sheriffs would be required to conduct foreclosure sales within 120 days of receiving orders to foreclose.

S1244

Codifies the Foreclosure Mediation Program and makes several adjustments to the program. These changes include notifying homeowners about the program when they receive their intent to foreclose and again when a mortgage foreclosure complaint has been filed against a property. The bill also requires that these written notices must be available in both English and Spanish.

Although these bills have several more hurdles to pass before becoming law, their introduction indicates cooperation among the executive, legislative and judicial branches during the state’s foreclosure reformation.

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