5. Why Aren’t More Borrowers Seeking
Alternatives?
• Do not understand the process
• Do not understand their options
• Cannot get in touch with servicer
• Do not know who servicer is
• Shame
7. Why Mediation to Manage
Foreclosures?
• Communication
• Not a “new” process
• Self-determination
• Decreases default judgments
• Servicers do not want to own
• Governments need movement
8.
9.
10.
11. States with
Foreclosure Dispute Resolution
Statewide (15) Local (11)
• Connecticut • Arizona (ASU area)
• Delaware • Florida (by circuit)
• Hawaii • Hawaii (by circuit)
• Indiana • Illinois (by county)
• Iowa • Kentucky (Lexington)
• Maine • Massachusetts (Boston,
• Maryland Springfield)
• Nevada • Missouri (St. Louis)
• New Jersey • New Mexico (by circuit)
• New York • Pennsylvania (Philadelphia)
• Ohio • Rhode Island (Providence,
• Oregon Cranston, Warwick)
• Vermont • Wisconsin (by county)
• Washington
• Washington D.C.
12. First Phase Design
GOAL: set up a meeting between a borrower and
a servicer to talk about how to save home
•How to create the program (rule-making)
•How to make sure the servicers participate
(enforcement)
•How to schedule mediation (management)
•How to make sure mediators know the law
(knowledge)
16. Second Phase Design
GOAL: improve program participation and
likelihood of positive outcomes
•Ensure appropriate cases access the full
mediation service and that other cases receive
assistance as needed (screening)
•Ensure people are prepared to negotiate
(preparation, partnerships, and compliance)
•Secure a timeline that maximizes opportunity for
a beneficial agreement (efficiency)
17. Problems
• Borrowers not requesting
• Lenders not participating
• Documents
• Borrowers not understanding
• Documents
• Little finality
• Documents
19. Status
• Ended
• Florida statewide, New Hampshire
• Added
• AZ, IL (counties), MA (Springfield), WA, D.C., OR,
• Expanded
• Hawaii: judicial and non-judicial
• Changed
• most
20. Problems
• Person with full authority not participating
• Documents
• Timeline increased considerably
• Documents
• Mediators changing roles
• Documents
• Legal challenges
22. Third Phase Design
GOAL: ensure compliance, create best
opportunity for people to move forward
•Create review mechanisms to ensure borrowers
and servicers comply
•Ensure support for borrowers and servicers to
complete document exchange
•Streamline all processes to ensure best chance
to resolve case before lose opportunity to save it
23. Evaluation for Effectiveness
• Percent of foreclosures mediated (4-69%)
• Percent of mediations reaching agreement
(21-82%)
• Percent of foreclosures eligible for mediation
resulting in retention (2-33%)
24. Status
• Ended
• Florida pre-foreclosure
• Added
• St. Louis
• Expanded
• Illinois (statewide)
• Changed
• Not much
