The Real Deal Miami

Report recommends additional mediation programs

June 23, 2009 02:26PM

Congress should fund state and local mandatory foreclosure mediation
programs, a new report from the Center for American Progress argues.
When hearing foreclosure cases, most judges find that more than 80
percent of homeowners at risk of foreclosure have not made any attempt
to work with their lenders to mitigate foreclosure. But in states where
mediation programs are now used more frequently, up to 75 percent of
foreclosure cases are being resolved without formal proceedings, the
report found. The report recommends that the Department of Housing and
Urban Development allow community development block grants to be used
to fund mediation programs until Congress provides funding and that the
government require mediation for all federally insured home loans. TRD