On July 24th a report was released by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) that gave an update on the success rates of homeowners participating in the Home Affordable Modification Program (HAMP). HAMP is a federal government program designed to help homeowners impacted by financial hardship by modifying their monthly mortgage payment. For homeowners who are eligible, the modification permanently changes the original terms of the mortgage. The report shows that of 1.2 million homeowners who received a HAMP permanent modification since the beginning of the HAMP program, 26% had redefaulted. Moreover, the more time that had passed since a homeowner had received a HAMP permanent modification, the more likely they were to have redefaulted, with the oldest HAMP modifications from 2009 at a 46% redefault rate. (more…)
Posts Tagged ‘foreclosure’
Thinking about Mediation’s Role in Mortgage Modification Success Rates
Just Court ADR, August 6th, 2013Foreclosure Mediation Upheld against Constitutional Challenge
Just Court ADR, August 23rd, 2012For 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…)
Using Foreclosure Settlement Funds for Effective Mortgage Dispute Resolution
Just Court ADR, May 21st, 2012The 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…)
Part 3 of 3: Foreclosure Mediation Best Practices
Just Court ADR, March 14th, 2012MEDIATION 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…)
