The Philadelphia Foreclosure Diversion Program has helped thousands of homeowners to avoid foreclosures. It has been successful in helping almost 80% of families stay in their homes. If these families and homeowners had lived in other cities or jurisdictions, it is likely that they would have lost their homes through the foreclosure process.
The conciliation conference program is a key part of the mediation process. This assistance program will help protect homeowners from foreclosure by requiring banks and lenders to follow certain rules and regulations. The lender needs to first meet with the homeowner to discuss the situation and see if they qualify for a loan modification. If the homeowner does not qualify for a loan modification, the lender may work with the homeowner to sell the property through a short sale. The homeowner will also receive legal representation, counseling, and other support in addition to the meeting.
If a homeowner in Philadelphia gets a delinquency notice from their bank or lender, the city court has to start the mediation process and make a conciliation conference. Dozens of professional volunteers work for nonprofit housing agencies and other organizations. They visit delinquent homeowners, give them fliers and information about the conciliation and mediation process, and advise them to call a hotline to speak to a free housing counselor who can provide additional assistance. So far, the system we’ve put in place for communicating with struggling borrowers seems to be working, based on the number of homes that have been saved.
The Philadelphia Foreclosure Diversion Program requires lenders and mortgage servicers to meet with homeowners who are struggling to make payments, in order to negotiate in good faith. If they do not do this, the foreclosure process will not be able to proceed. The Philadelphia Volunteers for the Indigent Program has helped to keep thousands of people in their homes across the city.
The Philadelphia Foreclosure Diversion Program is a meeting between the homeowners and lenders to come to some sort of agreement or outcome. The homeowner has the right to request that mediation occurs in front of a volunteer lawyer who will serve as a provisional judge if the lender or mortgage company does not cooperate or if they prove to be unwilling to offer options to help the homeowner bring their mortgage current.
The judge will then make suggestions to the person in charge of the mediation program. The judge can prevent the foreclosure from happening if they feel that the mortgage company is not being honest.
There are weekly mediation and conciliation conferences held every Thursday morning in the courtroom of the Philadelphia City Hall. Volunteer lawyers will speak with homeowners and corporate lawyers to try to find a solution that will help the homeowner make their mortgage payments. Borrowers will wait during this process.
What are some of the outcomes?
The amount of money a person can borrow from a lender will depend on that person’s financial situation and the lender’s policies. However, some homeowners will get mortgage modifications that enable them to not have to pay fees and make lower monthly payments and therefore keep their homes. Some people may be advised to pursue other options, such as a short sale from the government’s new Home Affordable Foreclosure Alternatives program, or they may be advised to accept cash to move out of their homes.
The Foreclosure Diversion Program in Philadelphia has helped a lot with the federal government’s Home Affordable Modification Program. The mediation process is more successful in ensuring that lenders carry out the program. In the past, banks and lenders have commonly rejected or ignored loan modification applications without giving explanations. The Philadelphia program helps to ensure that these rejections do not occur.
To speak to lawyers and staff from the Foreclosure Diversion Program in Philadelphia about using foreclosure mediation, dial 215-334-4663.