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Archive for the ‘Foreclosure Mediation’ Category

Retentions & Reflections: Thoughts from Illinois’ 17th Circuit Foreclosure Mediation Program Coordinator

Just Court ADR, July 6th, 2018

In 2013, RSI received a grant from the Illinois Attorney General to incubate foreclosure mediation in Illinois. This grant was funded by National Mortgage Settlement funds for a period of three years, later extended to five. This grant will be ending August 31, 2018, at which time the program will be taken over by the court. In this post, Sarah Flores, the Program Coordinator for the 17th Circuit Foreclosure Mediation Program, reflects on her experiences in the role.

Prior to becoming the Program Coordinator for the 17th Circuit Foreclosure Mediation Program, I didn’t know a lot about mediation. Before I became a program coordinator, I was a teacher and taught science and reading. As a teacher, I used mediation skills daily without even realizing it. When teachers ask questions, they need to listen and summarize, sometimes mentioning the emotions that students feel around the topic. Teachers have to make each student feel heard and active listening is a way to do this. Mediators do the same thing. They make each side feel heard, acknowledge emotions and summarize. After walking away from teaching, I have fallen in love with mediation in this position. I enjoy the satisfaction of making people feel heard and working through issues. Even though a parties’ issues may not be resolved in the end, they understand what they can do to resolve them.

I really enjoy being able to help people. Homeowners who are in foreclosure typically have not been there before and do not know how the process works or how to save their home. Empowering an individual who may feel helpless and undereducated about the process is one of the most rewarding parts of my job. Many times, even if the homeowner is not going to keep their house, they still are grateful for the program.

My best experience was getting to work with a couple who had given up completely. When they entered the program they were anxious about every step. I answered countless phone calls from them. In the end, they were able to keep their home and they were absolutely delighted with the result. Had they not been in the program, I am not sure that they would have followed through on all the steps to complete the retention process.

One of my worst experiences during my time as Program Coordinator involved working with a difficult homeowner who wanted to keep his home.  Even though I frequently clarified my role as a neutral party, the homeowner incorrectly thought that I could make the lender offer him better deals and that my mediator represented him. The homeowner wanted to negotiate a reinstatement amount, the lender would not negotiate on the amount. After several mediations where the homeowner did not have the funds, but kept stating that he would have them, the homeowner was removed from the program. I believe that had the homeowner been open to more options and better understood how the program worked, a more helpful solution could have been provided. Not all cases are negative, most cases that come through the program are positive and end with positive results.

The one thing I wish I could do is get homeowners to follow through. Although turning in the initial documents can seem daunting, especially to busy or elderly homeowners, it is an important task.  I try to help the best I can, but being a neutral party I can only do so much.

Though my time with RSI is coming to an end, I am glad I have the opportunity to continue doing this work. This is in large part due to the fact that the 17th Judicial Circuit has been an innovator in court ADR for decades. There was a lot of creative work that was done to keep the program financially viable after the grant comes to an end. That creativity shows this work is still valued even after the “foreclosure crisis” is over.

Nevada Foreclosure Mediation Program to Use HLP Online Portal to Administer Program

Nicole Wilmet, June 29th, 2018

In August, we reported that the Nevada legislature revived the state’s foreclosure mediation program by passing Senate Bill 490. One of the most notable changes Senate Bill 490 brought to the program included the transfer of program management duties from the Nevada Supreme Court to the Nevada District Courts and Home Means Nevada, Inc., a state affiliated non-profit that was created to address challenges and needs of distressed homeowners. As Home Means Nevada describes, under this new structure when an individual receives notice of default, they will then petition the District Court to participate in mediation. The District Court will then assign a mediator to mediate the case and Home Means Nevada will work closely with the courts and mediators to ensure a successful program.

This month, Home Means Nevada announced that it has selected Hope LoanPort’s® (HLP) web-based platform as the designated channel to administer the program. Founded in 2009, HLP was initially created to help solve the foreclosure crisis by developing a web portal where non-profit credit counseling agencies, attorneys and homeowners could apply for a loan modification or other solution. Today, the HLP platform has become a one-stop shop for homeowners nationwide to send documents to their mortgage companies. As Business Wire reports, the HLP portal will be the designated channel through which Home Means Nevada will administer the foreclosure program. As United Trustees Association reports, the HLP portal will streamline the document sharing process and will afford parties the opportunity to see and receive updates for their case in real time.

The HLP platform will be implemented in several stages with the first phase scheduled to launch July 1, 2018. The HLP Nevada Foreclosure Mediation page can be accessed here and contains updates, information on registering, and access to HLP platform training for counselors, servicers, and attorneys.

Rhode Island and Connecticut May Soon Be Without Foreclosure Mediation Policies if Legislature Intervention is Unsuccessful

Nicole Wilmet, June 6th, 2018

The future of both Rhode Island and Connecticut’s foreclosure mediation policies are currently in the hands of their respective state legislatures. Both states have sunset provisions looming on the horizon with the Rhode Island Foreclosure Mediation Act set to end on July 1, 2018 and Connecticut’s foreclosure mediation program set to end June 30, 2019.

Enacted in 2013, the Rhode Island’s Foreclosure Mediation Act grants homeowners who face foreclosure the opportunity to meet with their lender and an independent mediator to try to work out a solution to avoid foreclosure. According to the Providence Journal, since 2013 the Foreclosure Mediation Act has helped 679 families stay in their homes. In an effort to keep foreclosure mediation, earlier this year, Sen. Elizabeth Crowley, Sen. Paul Jabour, Sen. Harold Metts, and Sen. Ana Quezada sponsored a Senate’s version of the bill that would extend the sunset provision to July 1, 2023. In the House, Rep. Susan Donovan, Rep. Raymond Johnston, Rep. Mary Messier, and Rep. Michael Morin sponsored the House version of the bill that would repeal the sunset provision entirely. Currently, the Senate voted and passed their version of the bill on May 23, 2018, but the House Judiciary Committee recommended earlier this month that their version of the bill be held for further study.

The Connecticut legislature is also working to extend the life of their state’s foreclosure mediation program. The Connecticut foreclosure mediation program began in 2008. As this article from the Hartford Courant highlights, between the program’s inception on July 1, 2008 to December 31, 2017, the program has heard 27,958 cases. Of these cases 70% resulted in borrowers staying in their homes, 16% reached agreements for a short sale or other measure, and only 14% did not settle. Like the bills in Rhode Island, there are two versions of an act that would either extend or eliminate the sunset provision making their way through the Connecticut legislature. Both versions of the bill are sponsored by the House of Representatives Banking Committee with the most notable difference between the two bills being the treatment of the sunset provision. The House version of the bill the bill would eradicate the sunset provision for the program entirely whereas the Senate version would extend the sunset provision to December 31, 2019.  Given that the sunset provision doesn’t expire until 2019, the Connecticut legislature has more time to save their foreclosure mediation program than Rhode Island.

Foreclosure Mediation Saves 1,000 Homes in Illinois

Just Court ADR, June 1st, 2018

In compiling the latest statistical report for the eight foreclosure mediation programs funded by the Illinois Attorney General, RSI discovered that, as of last year, the programs helped over 1,000 Illinois homeowners stay in their homes. That’s a tremendous accomplishment and much is owed to the talented program staff that administer these programs, the neutrals who mediate these cases, the housing counselors and legal aid attorneys who advise the homeowners, and the Office of the Attorney General whose belief in the power of mediation made this all possible.

About a quarter of the cases, and 5% of the total foreclosure filings, end in retention. While that might not sound like much, it’s worth bearing in mind that in many instances, there is a significant power imbalance between the homeowner and their lender. That fact makes it quite possible that without the guidance provided by the housing counselors and attorneys, and the channels of dialogue between borrower and lender opened by the program staff and mediators, these homeowners would have very little chance of prevailing in the traditional judicial foreclosure process. Therefore, a retention rate of that magnitude is a tremendous victory. (more…)

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