Gov. Jack Markell recently joined Superior Court President Judge James Vaughn Jr. and members of the Mediation Program Steering Committee at New Castle County Courthouse to announce an administrative directive establishing the Residential Mortgage Foreclosure Mediation Program.
The program provides a mechanism by which homeowners can elect to participate in a court mediation process with their lenders to find a mutually agreeable alternative to foreclosure action.
“This program is the direct result of yet another great example of state agencies,
legislators, attorneys, lenders, bankers, housing counselors, nonprofits, advocates and other stakeholders coming together to find creative ways to help Delaware’s families keep their homes,” said Markell. “So many families facing foreclosure did everything right. They played by the rules; they worked hard but fell victim to the national recession. Helping them stay in their homes is good for our economy and good for Delaware’s families. Delaware is a state of neighbors. When we see a problem, we come together to solve it.”
Vaughn said the program adopted by the court represents the work of lenders and homeowners. “With the assistance of housing counselors, the program gives homeowners an opportunity to negotiate an alternative to foreclosure without affecting substantial rights of lenders,” said Vaughn.
The Residential Mortgage Foreclosure Mediation Program gives homeowners who are behind on their mortgage payments an opportunity to meet with a U.S. Department of Housing and Urban Development (HUD)-certified housing counselor and request mediation with their lenders under the guidance of Delaware Volunteer Legal Services.
Homeowners will work with a housing counselor to prepare a good-faith proposal under which they can reasonably sustain monthly mortgage payments, including taxes, interest, insurance and other fees. Providing the homeowner’s proposal to the mortgage lenders and creating a connection between homeowner, housing counselor and lender before and during the mediation session will give all parties the best chance to come to an agreement and avoid continuing the foreclosure process. This program is really about exchanging information and making connections to allow the best-case resolution to come to fruition.
“Historically, Delaware has averaged about 2,000 foreclosure filings each year. That number more than doubled to 4,500 in 2008. This year, the pace continues to grow and filings in Delaware are projected to exceed 6,000. This mediation program will be the first statewide comprehensive tool designed to keep families in their homes and thereby stabilize our state’s economy,” said Delaware State Housing Authority Director Anas Ben Addi.
|
