A new report from the National Consumer Law Center, documents, for the first time, how foreclosure mediation can keep paying borrowers in their homes while saving billions of dollars for local governments and investors. The report concludes that allowing homeowners to face mortgage servicers and their attorneys without third-party intervention is a recipe for disaster.
Rebuilding America: How States Can Save Millions of Homes Through Foreclosure Mediation calls on all states to adopt strong foreclosure mediation programs. The report reviews existing programs in 19 states and makes recommendations for best practices for all states to adopt, using foreclosure mediation data from the last three years to draw its conclusions. The report includes examples of programs that are more successful (Connecticut, Nevada, and New York) and those that are less so. Judicial enforcement of mediation program requirements in several states is also included.
The NCLC website also includes information regarding court decisions, pending mediation state legislation, model documents and a summary of all current state programs as well as a link to each program.