In the last two years, the six programs currently funded by the Office of the Illinois Attorney General have helped 476 homeowners save their homes. Almost 100 more relinquished their homes voluntarily, allowing them to make a fresh start. Combined, this means that the programs helped about 1/3 of participating homeowners – and their communities – to avoid the negative consequences of foreclosure. (more…)
Posts Tagged ‘outcomes’
Foreclosure Mediation Still Going Strong in IllinoisJennifer Shack, March 4th, 2016
In Foreclosure Mediation, Make It Easy to ParticipateJennifer Shack, June 25th, 2015
When it comes to foreclosure mediation, how a program is designed has a large impact on eligible homeowners. That was the broad finding of the evaluation of six foreclosure mediation programs in Illinois I just completed. The evaluation assessed the first year of the programs funded by the Illinois Attorney General, using data from an online case management and program monitoring system that allowed all but one of the programs to collect the same data using uniform definitions for each data point. The six programs are located throughout the state:
- The 6th Judicial Circuit (Champaign County only), serving a university town and a largely rural county in Central Illinois
- The 16th Judicial Circuit (Kane County), serving a large suburban Chicago community
- The 17th Judicial Circuit (Winnebago and Boone counties), serving Rockford, Illinois’ third largest city, in north-central Illinois
- The 19th Judicial Circuit (Lake County), serving a large suburban Chicago community
- The 20th Judicial Circuit (St. Clair County only), serving a suburban St. Louis community
- The 21st Judicial Circuit (Kankakee County only), serving a semi-suburban community south of Chicago
Each of the programs is designed differently, from how homeowners enter the program to what services they receive when they do. Their differences, combined with the collection of the same data for each program, provided insight on the effect of program design on participation, home retention and homeowner experience. The most interesting findings from these different models include the following:
Higher participation leads to higher impact
In the 21st Circuit, 68% of homeowners participate in the program, and 14% of all homeowners facing foreclosure in the program county were able to save their homes. The other programs have participation rates of 7% to 25% and between 2% and 6% of all eligible homeowners keep their homes. The 21st Circuit’s high rate of home retention for all eligible homeowners facing foreclosure relative to the other programs is due to its very high participation rate and not to proportionately better outcomes for homeowners who participate in the program. If only participating homeowners are considered, the 21st Circuit has the lowest percentage who keep their homes.
High barriers discourage participation
Programs whose required steps for participation are difficult for homeowners have the lowest participation rates. Those with the easiest steps have the highest participation rates.
One-on-one orientation and assistance with entry encourage participation
Programs that orient the homeowners to the program at their first point of contact have higher rates of homeowners who complete the entry process. In the 16th Circuit, almost 90% of homeowners who contact the program coordinator for an initial conference enter the program. In the 17th Circuit, homeowners receive assistance completing their application for the program, leading to a higher rate of participation than in the 20th Circuit, where many homeowners do not have contact with the program until after they complete the steps to enter.
Homeowners who receive services other than mediation are more likely to retain their homes
In the 20th Circuit, those homeowners who received assistance from legal services were more likely to retain their homes than those who did not. While not statistically significant, this was true as well for homeowners who received housing counseling in that program. In addition, in the 17th and 19th Circuits, where all homeowners receive assistance from housing counseling, the level of understanding they gained and their satisfaction with the service were extremely high.
Homeowners benefit from a second opportunity to participate
In the 20th Circuit, more than half of participating homeowners are referred to mediation by the judge at the default judgment hearing. They also are at least as likely to obtain a loan modification as those who enter the program after receiving their notification of mediation. This means that homeowners who could get a loan modification are selecting themselves out of the mediation programs and should be given another opportunity to participate.
To explore the data further, read the Executive Summary or the full evaluation.
Different Program Models Beginning to Show Different StrengthsJennifer Shack, August 4th, 2014
The Illinois Attorney General’s grant for foreclosure mediation has so far resulted in five programs with five different service delivery models. This has had me, as evaluator of the programs, anxious to find out how the differences will affect program outcomes. Having just completed the first statistical report for the foreclosure mediation programs, my initial impression is that program model really does matter when it comes to many performance measures. (more…)
Florida Looks to End Mandatory Mortgage Foreclosure MediationJennifer Shack, October 25th, 2011
A Florida judicial committee has called for the end of mandatory mediation in Florida. As reported in the Palm Beach Post on Friday, statistics from the circuits show that statewide only 3.6% of all cases referred to mediation reached agreement from March 2010-March 2011. The committee cited obstacles such as “homeowner mistrust of the mediation program and lender resistance” for the program’s poor performance.
This leads to the question of why mandatory mediation is working so much better in Philadelphia, where 70% of all homeowners referred to mediation participate in the process, and 33% leave with an agreement. Only 16% of participating cases end with a sheriff’s sale. Perhaps Florida should look north before scrapping their program.
Child Protection Mediation Study Shows Benefits For FamiliesJennifer Shack, January 18th, 2011
Child protection mediation has been shown in a number of studies to have a positive impact on families, the court and, most importantly, the children. Now one more study adds to the evidence for this. At the request of Judge Patricia Martin, the Presiding Judge of the Child Protection Division, RSI undertook an evaluation of the Cook County Circuit Court Child Protection Mediation Program. The study, which we just published, looked at three areas: program performance, program process and stakeholder understanding and assessment of mediation and its role and function within the child protection system. (more…)