User:Zen12 Reviews 1

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The person facing foreclosure attends Zen12 the mediation hearing. Their mortgage company is required to have a representative present who has the power to modify the mortgage and settle the case.This program has been far less successful than the one in Philadelphia. Only 32% of those people eligible for mediation have elected to participate. Mortgages were modified in only 42% of all of the mediation cases. 74% of the people who have had their mortgages modified have remained in their homes.It looks like the Connecticut program is not as successful as the Philadelphia program for several reasons. The program is not mandatory. Representatives from community organizations have not been asked to go out and talk to those people who face foreclosure. (In the Philadelphia program these representatives explain the mediation program to people facing foreclosure and encourage them to participate.) Financial counselors are not involved. There is no one to review each person's finances and prepare a plan specifically for that person.In New York a law was passed in August of 2008 creating a mandatory Foreclosure Settlement Conference Program for subprime mortgages. The court system runs this program.No organizations are reaching out and explaining the program to the people facing foreclosure. Counseling is recommended but not required. Mortgage companies are required to have representatives at the conferences. However, they sometimes send representatives who don't have the authority to modify the mortgage and settle the case. Representatives often fail to bring the proper paperwork to these conferences.

Because the program only cover people with subprime mortgages, it is difficult to determine how effective the program has been. What has happened so far is that the person facing foreclosure or the representative from the mortgage company has not been appearing at the scheduled conferences. Sometimes this has happened over 50%. At many of the conferences which have been held settlements have not occurred because the parties have not been prepared. As in Connecticut, it would appear that if there were representatives from community groups reaching out to people in foreclosure and making them aware of the program the number of people participating would increase. In addition, financial counseling should be required. The financial counselors could review each person's finances and prepare a plan which would set the framework for a modification of their mortgage. In the coming months many states and cities will be looking at the Philadelphia program. Hopefully they will incorporate all of the same components which have made it a success in Philadelphia to help people facing foreclosure in their states and cities save their homes.

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