Monday, July 19, 2010
Foreclosure Mediation in the Forefront
According to Center for American Progress., some states which have already enacted automatic mediation programs-meaning that mediation is automatically scheduled when foreclosure is initiated either through notice of foreclosure sale in nonjudicial foreclosures or through the filing of foreclosure in judicial foreclosures—-include California, Connecticut, and Florida. States such as these are seeing higher participation rates in their mediation programs, as CAP states that opt-in programs see participation rates below 25 percent, while automatic mediation programs have participation rates closer to 75 percent. From these rates, CAP has found that in automatic mediation programs 70 to 75 percent of cases end in a settlement, with 60 percent of homeowners reaching settlements that keep them in their homes.