FORECLOSURE MEDIATION PROGRAM MODELS Updated as of October 28, 2010

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1 FORECLOSURE MEDIATION PROGRAM MODELS Updated as of October 28, 2010 ARIZONA 1 ability to request contact Name: Lawyers Helping Homeowners Program Description: Homeowners with a foreclosure question and an above poverty line income completed a form to have a volunteer attorney contact them. Attorneys helped owners explore options such as loan modification and facilitated meetings with lenders. Funding/ Sponsorship: This program was co-sponsored by AZLawHelp.org, State Bar of Arizona, the Arizona Foundation for Legal Services & Education, and the Arizona Supreme Court. Notes: Though the website indicates a homeowner should fill out a form to request help, the link for the form leads to a generic Lawyers On Call page. 2 The page designed to have attorneys sign up for the program no longer allows sign ups. 3 It appears this program is no longer available. CALIFORNIA 4 Name: Perata Mortgage Relief Bill Description: Prior to filing a foreclosure, the lender must contact the borrower of a loan made between January 1, 2003 and December 31, 2007, in person or by telephone to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. The lender must also advise the borrower of the right to request another meeting, which must be scheduled within 14 days. Funding/Sponsorship: SB 1137 was supported by ACORN, California Association of Counties, Consumers Union, Center for Responsible Lending, California Reinvestment Committee, California Labor Federation AFL-CIO, and the Western Center on Law and Poverty. COLORADO 5 Location: Douglas County Name: Foreclosure Mediation Program Description: The goal of the program is to decrease the number of foreclosures in Douglas County by providing borrowers with tools and resources to use during the foreclosure process. The home must be owner occupied and be located in Douglas County. The homeowner s attorney files a Notice of Election and Demand to the Public Trustee. Then, the Public Trustee has authority to sell in Resolution Systems Institute

2 days if the homeowner cannot work out a loan modification. Douglas County Housing Partnership counsels the homeowner and helps them work with their lender by mediating the case. If the homeowner cannot get a modification, the Trustee sells the house for the homeowner. Funding/Sponsorship: Douglas County Housing Partnership and Douglas County Public Trustee s Office developed the program. CONNECTICUT 6 Name: Foreclosure Mediation Program Description: In order to qualify for this program, the borrower/homeowner must be an owneroccupant of a one to four family residential property and had foreclosure pursued on or after July 1, The lender sends a notice of the possibility of mediation, a certificate of mediation form, and an appearance form to the homeowner. If the homeowner files a certificate of mediation and an appearance within 15 days of receiving the summons, a mediation with a court-supplied mediator is scheduled. The mediation is mandatory if both parties have filed appearance. There is no cost to the program. The homeowner does not need to bring an attorney. The lender may be represented by counsel and, if so, must be within telephonic contact during the mediation. The mediator is a Judicial Branch employee. The mediator is trained in foreclosure law, mediation and community services, but does not have to be a lawyer. The mediation explores modifications and graceful exits. The process does not suspend foreclosures, but it must be completed within 60 days. Funding/Sponsorship: The Judicial Branch s Superior Court Operations Unit manages the program. DELAWARE 7 Name: Residential Mortgage Foreclosure Mediation Program Description: Homeowners find out about the program through information in the notice of foreclosure or by calling the Attorney General s Foreclosure Hotline. Residents meet with a housing counselor to prepare a proposal under which they can reasonably sustain monthly mortgage payments and other fees. Delaware Volunteer Legal Services counsel helps prepare a motion to request mediation. The proposal is presented to the lender and then is discussed in mediation. Funding/Sponsorship: Governor Jack Markell issued an administrative directive to create the program in partnership with organizations including the Superior Court of Delaware, the Delaware State Housing Authority (DSHA), Attorney General's Office, State Legislators including Representative John Kowalko, the Bank Commissioner's Office, County representatives, Community Legal Aid Society, Inc (CLASI), the Delaware Bankers Association and mortgage lenders, Delaware Volunteer Resolution Systems Institute

3 Legal Services, Legal Services Corporation of Delaware, ACORN, attorneys, and HUD-certified housing counseling agencies. DISTRICT OF COLUMBIA 8 Location: District-wide Name: Foreclosure Mitigation Program Description: Lenders must send a notice of availability of mediation to homeowners with the notice of foreclosure. If homeowners opt in to mediation, then lenders and homeowners have 90 days to mediate before finalizing a foreclosure. The District's Department of Insurance, Securities and Banking monitors the program, including ensuring lenders comply with the program requirements. Mediators may charge no more than $1000, with the homeowners paying at least $50 of the fee. Funding/Sponsorship: Proposed by Ward 4 Council Member Muriel Bowser and approved by the District Council, the program will be managed by the District's Department of Insurance, Securities and Banking. FLORIDA 9 Name: Residential Mortgage Foreclosure Mediation Program Description: All new foreclosure cases involving primary residences will be referred to mediation once Florida s 20 judicial circuits issue administrative orders. Borrowers may opt out after being called by the mediation manager. Homeowners must see a foreclosure counselor to be eligible for mediation. Tenants can opt in to mediation but must share costs with the lender. Mediators must be from nonprofit organizations independent of the judiciary branch which can sustain operations without any payment from the courts. The program also requires statewide data collection on mediation outcomes. The mediation manager must schedule a mediation between 60 and 120 days after the foreclosure suit is filed. The mediation manager is responsible for contacting the borrower and explaining the program. Funding/Sponsorship: After a 2009 Task Force on Residential Mortgage Foreclosure Cases recommended foreclosure mediation as a response to Florida s high foreclosure rate, the Supreme Court adopted a foreclosure mediation program. 10 Lenders are responsible for mediation costs, which are capped at $750. A variety of organizations provide the mediations, including the American Arbitration Association, Collins Center for Public Policy (which handles cases for the 1st, 10th, 11th, 12th, 14th, and 19 th districts), and others Resolution Systems Institute

4 HAWAII 11 Location: Third Circuit 12 Name: Foreclosure Mediation Pilot Program Description: Set to end October 31, 2010, this program was an experiment requiring lenders to send notice to borrowers of the possibility of mediation. Borrowers had to file a Request for Mediation, and then mediation was scheduled. Location: First Circuit Name: part of the Court s regular contract for mediation services Description: The Mediation Center of the Pacific receives case referrals from judges to mediate foreclosure cases. ILLINOIS Location: 12 th Judicial Circuit (Will County) 13 Name: Mandatory Mediation Program Description: Court rule approved by the Supreme Court mandates mediation for residential foreclosure cases. There s an additional $150 filing fee for plaintiffs. Defendants do not pay anything. Defendants can bring housing counselor and/or counsel with them. Documents must be exchanged, including defendant financials. Every mediation has a pre-mediation screening between 42 and 60 days after summons. There, a mediator determines whether further mediation will be beneficial. Mediators are retired judges or lawyers with at least five years experience. The proceedings are confidential. Afterward, the mediator makes a report to the Presiding Judge. Funding/Sponsorship: Mediators will be paid $150 for each file. To finance the program, the Supreme Court has authorized an increase in the filing fees paid by a plaintiff for all foreclosures in the 12 th Judicial Circuit from $276 to $426. Location: Circuit Court of Cook County (Chicago) 14 Name: Circuit Court of Cook County Mortgage Foreclosure Mediation Program Description: A homeowner who has received a notice of foreclosure may call a hotline or complete an online request form to begin the foreclosure mediation process. The first step is a meeting with a housing counselor, where a homeowner may apply for HAMP or other federal programs. Next, the homeowner meets with a volunteer attorney from Chicago Volunteer Legal Services. The attorney assists the homeowner in completing a request for referral to mediation, which the homeowner then takes to the court. At some point prior to mediation, the Chicago Legal Clinic will review the case Resolution Systems Institute

5 for any legal defenses. A mediation coordinator then coordinates up to three mediations, where the lender s attorney and a homeowner with his/her attorney explore options, including graceful exits and loan modifications. All mediators are volunteers. Funding/Sponsorship: The program was created through a General Administrative Order No , issued by Presiding Judge of the Chancery Division, the Honorable Dorothy Kirie Kinnaird, on April 8, The Cook County Board of Commissioners designated $3.5 million for this program. INDIANA 15 Location: Each county is responsible for developing its own program, though the order is statewide. County program descriptions are below. Name: Mortgage Foreclosure Trial Court Assistance Project General Description: A project manager (PM) oversees local logistical coordinators (LCs) and/or facilitators, who coordinate with pro bono attorneys, homeowners and lenders to schedule and take part in settlement conferences. The LCs are employees of the Supreme Court and are paid $20 per session scheduled. Duties include scheduling settlement conferences; ensuring that the logistical requirements of the conference area are met (e.g. telephone and fax services); checking that the homeowner has completed the necessary paperwork and gathered the required documents, including all reasonably required financial information; ensuring that the lender has submitted all relevant loan documentation, including any regulations limiting or otherwise dictating the lender s ability to negotiate and any programs generally available to qualified borrowers; and collecting data dating back to July 1, 2009 that tracks the number of settlement conferences and identifies the resolution of each. This data will be forwarded to the Project Manager to assist the PM in compiling statistics regarding the conferences successes and failures. Facilitators help the parties come to an agreement and/or know what they need to come to an agreement. The facilitator also makes a determination about whether the homeowner needs to be represented by pro bono counsel. Facilitators are lawyers or judges. They are contracted with and paid by the Supreme Court. The Mortgage Foreclosure Task Force maintains a list. 16 Funding/Sponsorship: The Indiana General Assembly passed Senate Enrolled Act 492, now codified at I.C et seq. Through a Mortgage Foreclosure Task Force, the Indiana Supreme Court, the Indiana Housing and Community Development Authority (IHCDA), Indiana Pro Bono Commission, and the Indiana Commission for Continuing Legal Education educate trial court judges and train and recruit volunteer lawyers and mediators. So far, over 30 foreclosure training events throughout the state, reached over 1,000 judges, lawyers, and mediators. There is a $50 filing fee for new mortgage foreclosure actions filed after July 1, This fee is collected by the IHCDA and submitted to the Supreme Court for payment of facilitator, logistical coordinator and project Resolution Systems Institute

6 manager salaries, as well as reimbursement for pro bono attorneys, data collection expenses, administrative costs and other costs and supplies. Location: Allen County Description: Under this structure, Judge Nancy Boyer established a phone line at the Allen County Courthouse dedicated solely to mortgage foreclosure filings. After a foreclosure case is filed, Judge Boyer issues a single-page notice to the borrower, ordering the borrower to contact the court at the hotline phone number. Those who call the court speak with a member of the court staff who evaluates the borrower s eligibility for a settlement conference and asks the borrower if s/he would like to request a settlement conference. If the borrower requests a settlement conference, the court issues an Order for Telephone Conference, requiring both the borrower and lender to call into the court on a certain date and time and speak with a facilitator. At this telephone conference, the facilitator ascertains what documents are needed from each side, obtains the contact information for the loan servicer, and requires that the lender's conference participant have full settlement authority. A Post-Telephone Conference Order is then issued, confirming that the telephone conference took place, listing all the tasks the lender, borrower, and facilitator must complete prior to the settlement conference, and setting a time, date, and location for the settlement conference. Location: St. Joseph Description: The St. Joseph County Courts have adopted a temporary order requiring plaintiffs filing foreclosure cases to provide an extra addressed/stamped envelope and a service list (including telephone number) for each individual named as a defendant. This temporary order also provides that all foreclosure cases in which a request for settlement conference is made are transferred to Judge Manier (for administrative purposes only this way, the weighted caseload is not affected). Judge Manier s secretary is serving as logistical coordinator, and two local attorneys have been selected as facilitators. Judy Fox and students from the Notre Dame Legal Clinic are also planning to serve as facilitators beginning in mid-to-late summer. When a foreclosure case is filed, the LC uses the extra envelopes provided by the plaintiff to mail out a Notice To Homeowners Facing Foreclosure Proceedings, with a tear-off form at the bottom titled Request for Settlement Conference. This form has both a yes and no option, as well as questions determining the borrower s eligibility for a settlement conference. The borrower should fill this notice out and return it to the court. The LC will also use the telephone numbers on the Service List to contact any homeowners who have not either requested or declined a settlement conference within 7-10 business days after the notice is mailed. Once per week, the LC makes a list of all settlement conference requests once 4 or 5 are received, the LC contacts one of the facilitators to ensure availability on a certain date approximately 2 to 3 weeks away, then mails out a Notice for Telephone Conference to the borrower and lender. At the telephone conference, the facilitator determines what documents are needed by each party in order Resolution Systems Institute

7 to successfully negotiate, requires the parties to produce all identified documents by a certain date prior to the settlement conference, and sets a time and date for the settlement conference. A Notice of Settlement Conference is then issued, and the conference takes place. The court must then issue a Post-Settlement Conference Notice, confirming that the conference took place, identifying the parties and facilitators, stating the result reached at the settlement conference (and if no result was reached, whether follow-up work is necessary and who will perform this work). A copy of this Notice should be remitted to the Supreme Court electronically or via mail so that settlement conference statistics can be compiled. Location: Marion County Description: The Marion County pilot project comprises three courts Circuit Court, headed by Judge Louis Rosenberg; Superior Court 4, headed by Judge Cynthia Ayers; and Superior Court 10, headed by Judge David Dreyer. Circuit Court and Superior Court 4 each have a combination Logistical Coordinator/Facilitator, while Superior Court 10 has its own Logistical Coordinator who selects facilitators on a rotating basis from a list of five to six registered foreclosure mediators. Marion County, like St. Joseph County, has implemented a temporary order requiring lenders to provide additional contact information for borrowers (including cell phone numbers and addresses). After a foreclosure case is filed, the local logistical coordinators/facilitators reach out to the borrower via telephone and ask the borrower if s/he would like to request a settlement conference. If a borrower requests a settlement conference, the logistical coordinator/facilitator sets a time and date for the conference. An Order is then sent to the lender requiring the lender to attend the settlement conference on a certain time and date and to provide any and all documents requested by the facilitator. After the settlement conference, a data collection form detailing the events and results of the settlement conference is then filed with the Court and remitted to the Project Manager for data collection and payment invoicing. IOWA 17 Name: Mortgage Foreclosure Hotline Project Description: Originally, homeowners would call a hotline where they were connected with Iowa Mediation Service. From there, the homeowner had two options. First, the homeowner might sign a release allowing the Service to gain access to their financial records. The Service would then call the loan servicer or another party with authority and attempt to negotiate a modification on the homeowner s behalf. Second, the homeowner could simply request a mediation with the lender, in which case the Service would provide a neutral third party to mediate the meeting Resolution Systems Institute

8 The program was revised after stimulus money gave the program a personnel boost. Now, a housing counselor answers the hotline and directs the call as needed. The housing counselor recommends mediation, with Iowa Mediation Services providing the mediation services, but only if the case is complex. Funding/Sponsorship: In 2007, the Iowa Attorney General developed this program in partnership with the Iowa Mediation Services, who had handled the 1980s farm foreclosure crisis mediation program. The AG gave Iowa Mediation Services $4500, won in a fraud settlement against mortgagor Ameriquest, to start the project. In 2008, the AG received a $1.5 million federal grant to grow the program. KENTUCKY 18 Location: Jefferson County (Louisville) Name: Residential Foreclosure Conciliation Program Description: A Master Commissioner holds a conciliation conference before the sale of a one to four unit residential property. The homeowner will receive a notice of the availability of the conciliation conference soon after the summons. If the homeowner returns financial forms to the Court, the Court will schedule the conciliation conference, which the lender is required to attend. Funding/Sponsorship: An administrative Court order formed the program as an exercise of the court s power to refer parties to ADR and create new case management systems as needed. MAINE Location: This began with a pilot program in York County from August 2009-December The Rule took effect for all of Maine on January 1, 2010, with properties foreclosed on before then qualifying if the judge elects. Name: Maine Foreclosure Diversion Program 20 Description: The lender must give notice to the borrower, when in default, that there are options other than foreclosure, including talking to the bank about loan modification and requesting mediation. The Bureau of Consumer Credit Protection then sends out a notice of the availability of mediation to the borrower. The Bureau will manage a hotline and contract out to non-profit housing counselors to serve homeowners. The Bureau also developed the mediation request form for the Court. Money for the program is taken from the Maine Revenue Service agency and from court 18 _order.pdf; 19 gram.pdf Resolution Systems Institute

9 filing fees that the lenders pay. The Director, three clerks, and one administrative assistant will be paid. Only homeowners of homes with four units or fewer who also live in the home qualify for this program. The calculations must be from the FDIC. The financial information exchanged is confidential. A defendant can either request mediation or turn in the notice that the lender attaches to the complaint. The Court then assigns a mediator. The mediator must be trained in mediation and all relevant aspects of the law. The mediator must also know about community resources, including mortgage assistance programs. The Foreclosure Diversion Program trains the mediators. The judge may require the parties to attend an informational session to review what is required document-wise before the mediation. At any point in the mediation, the mediator can refer the defendant to a housing counselor or a mortgage assistance program. Mandatory presence at the mediation exists for the mortgagee (through in-person or telephonic means as long as the mortgagee has a representative also present), the defendant, and counsel for both parties, if available. The defendant is not required to be represented at the mediation. 21 The mediator presents a report to the Court after mediation that may include whether the parties acted in good faith, which includes whether the parties brought the right documentation. The foreclosure will be on hold while the mediation process is pending. The Administrator must report to the legislature about (1) The performance of the program, including numbers of homeowners who are notified of mediation, who attend mediation and who receive legal counseling or legal assistance; and (2) The results of the mediation process, including the number of loans restructured, number of principal write-downs, interest rate reductions and number of homeowners who default on mortgages within a year after restructuring, to the extent the court has available information. Funding/Sponsorship: The program is administered by an officer of the Court and a fund is maintained in the Administrative Office of the Court to support the program. 22 MARYLAND 23 Name: Maryland s Foreclosure Mediation Program, part of Maryland s statewide Home Owners Preserving Equity (HOPE) Program Sec. 1(12)(A), ; pdf; Resolution Systems Institute

10 Description: Along with the summons, the lender also must provide more complete information about options available to homeowners, including information about specific modification programs such as the federal Home Affordable Modification Program (HAMP), any lender-specific programs, and resources and assistance available from non-profit organizations and the government. If a homeowner fills out and returns a loan modification application, the lender must evaluate the request and document their decision before foreclosure can proceed to the next step. Should a lender take the next step and initiate foreclosure proceedings with the court system, they must also file a Final Affidavit with the court and send the homeowner a Request for Mediation form. Homeowners will have 15 days to complete the form and file it with the Circuit Court. Once the mediation request is filed with the Circuit Court, the court refers it to the Office of Administrative Hearings (OAH). The OAH must conduct the mediation within 60 days after it receives your request from the court. Funding/Sponsorship: The program was established under a Maryland State law. Homeowners must pay a non-refundable $50 fee when they formally file this request for mediation. MICHIGAN 24 Name: Michigan Foreclosure Prevention Project Description: Not officially mediation, the project sends a notice with the foreclosure informing the homeowner of his right to work with a housing counselor, a pro bono attorney and the lender to find a solution. Effective July 5, 2009, the program requires a foreclosure complaint to be accompanied by a list of approved counselors. A debtor has 14 days to contact one of these approved counselors in order to set up a negotiation with his or her lender. The homeowner has 90 days to work this out before the foreclosure proceeds. Funding/Sponsorship: House Bill 4454 created the program. NEVADA 25 Name: State of Nevada Foreclosure Mediation Program Description: Homeowner must have a home that is a primary personal residence (no limit on number of units). Instructions for completing mediation request forms are attached to the notice. The homeowner must file an Election of Mediation within 30 days of receiving the foreclosure notice and, within 30 days of filing, complete financial forms. Both parties are supposed to exchange relevant documents at least 10 days before the mediation. The lender must file an Election and bring to the mediation the certified copy of the deed of trust, the mortgage note, and each assignment of Resolution Systems Institute

11 the deed of trust and the mortgage note. The mediation will occur within 135 days of the mediator s payment being received by the Foreclosure Mediation Program Administrator, who is an employee of the Administrative Office of the Courts. The mediator, who is designated by the court and can be a judge, an attorney, or non-attorney with 40 hours mediation training and 10 hours foreclosure training, must schedule the mediation within 45 days of receiving notice. The lender may participate telephonically with previous approval. If any party is mediating in bad faith, the other party may request judicial review within 15 days. Funding/Sponsorship: The Nevada General Assembly created the program in 2009 through Assembly Bill 149 (AB 149). Both parties have to pay $200 to participate in the mediation. The program was developed by The Alarcon Group, which also provides the mediators. 26 NEW HAMPSHIRE 27 Name: Foreclosure Mediation Program Description: The homeowner must be an occupant of a one to four family home. To opt in to the program, the homeowner must print out and return a screening form from the New Hampshire Court website. Upon receipt of an eligibility screening form from the borrower, the lender determines whether the borrower, who may be at risk for a loan default resulting in foreclosure, is eligible for the mediation program. Only borrowers whom the lenders consider eligible for a restructured loan are then sent to mediation. Documents must be exchanged before the mediation. Mediation is free to both parties. The Court s Office of Mediation arranges the mediation. The lender may participate telephonically. The mediator is trained in mediation and foreclosure law. There is only one mediation session allowed. All mediation is confidential. The foreclosure proceeding is not stayed. Funding/Sponsorship: The New Hampshire Judicial Branch Office of Mediation and Arbitration established the program. It is funded through a grant. There is no cost to either party for the mediation. NEW JERSEY 28 Name: New Jersey Judiciary s Foreclosure Mediation Program Description: Only residences of one to three units qualify. Mediation is mandatory for homeowners that contest the foreclosure, optional for those who do not contest the homeowners, and is an option for homeowners that fail to appear, resulting in a default judgment. The notice is sent three times to the homeowner. Mediation can be requested up to the Sheriff s sale. To request, the homeowner Resolution Systems Institute

12 must work with a housing counselor to prepare HUD paperwork and a Request for Mediation for the court. Foreclosure will not be stayed, but Sheriff s sale will be. Mediation is free. Training for the volunteer mediators, who do not have to be attorneys, is free. They must take a day long course in relevant foreclosure law and complete 18 hours of training. They may be paid if funds are appropriated. A Civil Complimentary Dispute Resolution coordinator manages the flow of cases. The first mediation is scheduled within 90 days of the office s receipt of financial information from the homeowner. The office will send documents from homeowner to lender. Funding/Sponsorship: The program is a joint effort of the Judiciary, the Office of the Attorney General, the Housing Mortgage Finance Agency in the Department of Community Affairs, the Public Advocate, the Department of Banking and Insurance, and Legal Services of New Jersey. 29 The legislation passed during the 2008 session after a pilot program in Middlesex showed success. 30 NEW MEXICO 31 Location: First Judicial Circuit (Santa Fe) Name: Foreclosure Mediation Option in the Court ADR Pilot Program Description: Notice of possibility of mediation comes with summons. Any party can request a referral to foreclosure mediation. Referral orders require mediation sessions to be scheduled within 60 days of entry of the order. Parties are required to exchange extensive information prior to the mediation session. Plaintiff is required to designate a representative with settlement authority to attend the session either in person or telephonically. Defendant homeowner is required to meet with a HUDapproved housing counselor prior to session. Mediators are attorneys on the Court s ADR settlement facilitator list, which pre-dated this program, who have foreclosure experience or training. Funding/Sponsorship: The District Judges issued an Administrative Order to create the program. Mediators are paid $500 for a four-hour session; parties pay equal shares, but parties who can t afford it may request free or reduced-cost mediation. The Court Administrator manages the program. NEW YORK 32 Name: Mandatory Residential Foreclosure Settlement Conference Description: The settlement conference is scheduled for no more than 60 days after the lender files notice of service. It is mandatory to attend. The homeowner and lender must bring certain documents to a scheduled settlement conference with the judge. A homeowner who wants to appear 29 ID0191.html Resolution Systems Institute

13 pro se will be automatically considered eligible for free legal services. Along with counsel and parties, the judge will explore options for settlement, including loan modifications. If the homeowner appears without counsel, the judge is required to inform the homeowner of his/her rights. No requests may be made from either side to pay for costs from the other. Funding/Sponsorship: The New York legislature passed Chapter 507 of Civil Practice Law and Rules 3408 provides the guidance for procedure. OHIO 33 Name: Foreclosure Mediation Program Model Description: The Model was developed so Ohio courts, and national courts, could adapt the Model for their own uses. The Model suggests a notice of the availability of mediation be sent with the summons. Other resources are suggested to be included, like a mediation brochure and a timeline of the mediation process. Within 28 days, the homeowner must request mediation if they choose from the Mediation Department. The Mediation Department then sends a form to the borrower and the lender to be completed in 14 days. The Mediation Department then determines whether mediation is appropriate and tells the court and the parties. If appropriate, the mediator will send a Notice of Mediation to both parties. The mediators are employees of the court but do not have to be lawyers or judges. Over 1,100 lawyers have volunteered to either represent homeowners or serve as mediators. The proceeding is confidential. There is one mediation session. After the mediation, all parties complete evaluations. Funding/Sponsorship: The Ohio Supreme Court s Dispute Resolution Section and Advisory Committee, in collaboration with State Treasurer Richard Cordray and the Offices of Governor Strickland and Attorney General Dann, representatives of mortgage lenders, the Ohio State Bar Association, the Equal Justice Foundation, the Ohio Legal Assistance Foundation, the Ohio State Legal Services Association, the Coalition on Homelessness and Housing for Ohio, the Legal Aid Society of Southwest Ohio, and Legal Aid Society of Cleveland developed the mediation model. In some counties, the Board of Commissioners has provided funding for the program. 34 Other courts have charged a filing fee of up to $500 for foreclosure filings, and the Residential Foreclosure Mediation Fund in those counties manages the money and directs it to foreclosure mediations. 35 OREGON 36 Name: Foreclosure Notice Requirement Description: Lenders are required to send out a notice of availability to meet to the borrowers with the summons. Borrowers then have 30 days to request an in person or telephonic meeting with the lenders to discuss loan modification options. If the borrowers request it, the lenders must comply Ohio Revised Code Chapter (E)(1) Resolution Systems Institute

14 Borrowers may also work with a non-profit housing counselor to request a modification. No loan modification is required, but the lender must file an affidavit with the country recorded stating the lender s compliance with the requirement. The program will end January 2, Funding/Sponsorship: In 2009, Oregon passed the Senate Bill 628. The Division of Finance and Corporate Securities administers the program. No funds were appropriated for this program. PENNSYLVANIA The Supreme Court recently asked all counties that didn t have a foreclosure mediation program to develop one. 37 All current counties with programs model the Philadelphia program, with variations listed below. Location: Philadelphia 38 Name: Residential Mortgage Foreclosure Pilot Diversion Program Description: Only residential properties of four units or fewer are eligible. The conciliation conference is mandatory for all eligible parties before a judicial sale can proceed. First, there is a Case Management meeting within 45 days of the summons filing. Then the defendant will be required to call a hotline. The parties can meet with HUD-paid housing counselors first. Documents must be exchanged prior to conciliation. Over 360 pro bono lawyers trained to represent parties in mediation. The conciliators are Judges Pro Tem (retired judges doing pro bono), Civil Case Managers, or other judges and may offer a recommendation at the end of the session. The conciliation session is not confidential. An additional conciliation session may be scheduled at the first conciliation session. Foreclosure is stayed pending the conciliation. Outreach to homeowners is critical to this program. Referral to conciliation happens during call, which is one day a week, and thus makes it difficult for pro bono respondent attorneys to file legal challenges before conciliation. If an elderly person is a homeowner, additional social services are provided. No evaluation is currently being conducted. Funding/Sponsorship: The First Judicial District of Philadelphia and the Court of Common Pleas of Philadelphia County issued Joint General Court Regulation No in No funding has been appropriated for the program. Location: Bucks County 40 Name: Mortgage Foreclosure Diversion Program 37 foreclosure_mediation_urged.html 38 Some notes are on file with RSI Resolution Systems Institute

15 Description: In July 2009, Bucks County began a program similar to Philadelphia program. Homeowners call a hotline first, then are referred to specific housing counselors. A county staff person, not a judge, arranges the conciliation conferences. One judge then conducts all conferences. Funding/Sponsorship: No additional appropriation is needed, since a county staffer arranges the conferences. County attorneys volunteer representation. Location: Allegheny County 41 Description: A judge hears cases as a conciliator three to four days a month instead of hiring Judges Pro Tem or Special Masters. The Department of Court Records created a separate series of docket numbers for these cases so they can be monitored separately from other Civil Division cases. Location: Butler County 42 Description: Adopted in 2009, this program allows parties who have attorneys to skip the housing counselor session and simply file financial information prior to the conciliation conference. Location: Fayette County 43 Description: Adopted in 2009, this program requires defendants to contact Southwestern Pennsylvania Legal Services, Inc. to request Mitigation Counseling and a 90-day stay of foreclosure. Location: Somerset County 44 Description: Started in 2010, this program allows defendants to request a 60 day stay on the foreclosure during the mitigation counseling proceedings. Location: Northampton County 45 Description: The County pays for case manager and Special Master to conciliate the cases. The homeowner must meet with counselor at least two weeks before conciliation. Failure of defendant to attend conciliation results in proceeding to trial/judgment. Location: Lackawanna County 46 Description: This program allows defendant not to meet with a housing counselor if represented by counsel. Conciliation conferences occur once a month Resolution Systems Institute

16 RHODE ISLAND 47 Location: Providence Name: Code of Ordinances Description: The city s recorder of deeds will not accept a foreclosure filing if the lender does not take certain steps. The lender must notify the city of its intent to foreclose on the property at the same time it notifies the homeowner. After filing the notice, the lender and borrower must schedule a counseling conference no later than 30 days after mailing the notice. If the homeowner does not respond after two attempts by the counseling conference coordinator, the counseling agency will authorize the lender to move ahead with the foreclosure proceedings. The bank may be sued for up to $2000 if the bank fails to notify the homeowner of the foreclosure possibility. Funding/Sponsorship: The City Council passed an ordinance in 2009, although Deutsche Bank challenged the constitutionality of the action. The superior court upheld the ordinance (May 17, 2010). 48 VERMONT 49 Name: Vermont Banking Mortgage Assistance Program Description: The program applies to home loans that are subject to President Obama s Home Affordable Mortgage Program (HAMP), whether or not the loan has already qualified for a HAMP modification (reduction in mortgage payments). A mediation for a HAMP-qualified loan may be requested up to four months after the judgment is entered or the judge sends it directly to mediation if the mortgagor files an appearance. The lender sends a notice of the opportunity to request mediation along with the summons. Those in foreclosure are recommended to speak with the Vermont Banking s Mortgage Assistance program and a housing counselor at Vermont Home Ownership Center. Representation in mediation is not required but is recommended. Once a mediation request is made, the mediator contacts the homeowner to inform them of the date of the mediation and to request financial information from them, to be sent three weeks prior to mediation. The redemption period is not stayed by mediation. Parties may still go through mediation even if they don t qualify for HAMP, if the defendant requests mediation. Vermont Legal Aid has been contracted to telephonically contact people who are eligible for the program. The program requires servicers to comply with the HAMP program and disclose their HAMP eligibility calculations. The servicers are also supposed to consider all options, including forbearance, modifications, reductions, etc. The servicer must produce pooling and servicing agreements if the servicer claims it disallows modification. The servicer must be able to access electronic records during Resolution Systems Institute

17 the mediation. The borrower must send all documentation to the servicer within 20 days of the mediation. Mediators must be licensed attorneys and have gone through a VBA approved training. They must submit a mediator s report to the court and parties within seven days of the mediation. While no evaluation should be given in the report, the report must include any calculations used to analyze alternatives and whether the parties operated in good faith. The court may institute sanctions, if necessary. Funding/Sponsorship: The Vermont legislature passed 12 V.S.A in The servicer pays for the mediation, except for those costs associated with the homeowner (homeowner s attorney, travel, etc.). WISCONSIN Bill SB 255 in 2009 proposed to make statewide what is already in a few counties. It did not pass. 50 Location: Buffalo County 51 Name: Real Estate Foreclosure Mediation Description: Only foreclosures on one to four family residential properties qualify. The summons and complaint include a description of mediation and an application. If mediation is requested by the homeowner, the lender must attend. There are sanctions for not acting in good faith. Funding/Sponsorship: Local Court Rule began the program in Location: Pepin County 52 Name: Foreclosure Mediation Program Description: Only foreclosures on one to four family residential properties qualify. The summons and complaint include a description of mediation and an application. Homeowner may request mediation, though the Court may waive mediation if the homeowner is HAMP eligible or a prior work out agreement has not held. But, once the Court approves, the lender must attend. There is no income limit. The homeowner prepares a proposal with a housing counselor, then proceeds to mediation. No attorney is required for the homeowner. The whole process should be completed within 60 days. The foreclosure process is not required to be halted in the meantime. Funding/Sponsorship: Local Court Rule began the program in Location: Milwaukee 53 Name: Milwaukee Foreclosure Mediation Program see also flier on file 52 see also flier on file Resolution Systems Institute

18 Description: Only foreclosures on one to four family residential properties qualify. As of July 22, 2009, the lender attaches a notice announcing the availability of the mediation process to the foreclosure summons and complaint. Mediation must be affirmatively requested by either the borrower or the lender. Both the borrower and the lender must agree to mediation, so even if the borrower requests it, the lender can decline to participate. The borrower meets with a housing counselor prior to mediation. No attorney is required for the homeowner. Mediations are typically scheduled days after the request for mediation is received. Mediators are community members who also go through a special training. Outcomes may be a modification, a graceful exit, or other solution. The mediation does not stop the foreclosure. Funding/Sponsorship: Marquette University Law School received $310,000 in 2009 from the Wisconsin Department of Justice to start a foreclosure mediation program. The homeowner and the lender each pay a $100 processing fee to Marquette University. Chief Justice Jeffrey A. Kremers of Milwaukee signed directive to start the program. Location: Dane County Name: Alternative Dispute Resolution Description: The rule suggests the foreclosure mediation will be like mediations in Wis. Stat , where the judge is allowed to refer people to an alternative dispute resolution process. 54 Either party must make the request for mediation in writing. Funding/Sponsorship: On January 27, 2010, Dane County approved Rule 118, which requires a notice of the availability of mediation services to be sent with the summons. 55 Reasonable costs are paid by both parties. Location: Outagamie County (Green Bay) Name: Outagamie County Court Rule on Foreclosure Procedure Description: They refer people to the Milwaukee Program. 56 Funding/Sponsorship: On March 1, 2010, the Eighth Judicial District Chief Judge put forth a local directive to require a notice of the availability of mediation services with all foreclosure summons Resolution Systems Institute