The
program funding is available for multi-year grants to 501(c)(3) tax-exempt
organizations. But, these organizations must be able show the capability
to manage mortgage foreclosure mediation programs. In other words,
eligible firms are required to have multiple facets to their program plan, including
access to housing counseling and pro bono legal representation for eligible
borrowers. Moreover, they must include a sustainability plan that
includes a long-term funding strategy—done so through either a dedicated
filing-fee add-on or some other source. Projects must also include the
training of judges, key court personnel and volunteers on mortgage foreclosure
mediation. Clearly, such organizations must display a competent and
committed strategy in order to undertake these mediation programs.
“Effective mediation programs are proven to give homeowners
a fighting chance to save their homes,” Madigan said. “Borrowers who’ve gone
through foreclosure mediation have significantly better chances at receiving a
loan modification and reaching a positive outcome.”
Are foreclosure mediation programs that effective?
To begin, our Oak Park & River Forest foreclosure lawyers understand that a state or county’s experience with these
mediation programs can differ vastly. Furthermore, not one mediation
program is like the next. Therefore, generalizing their worth (or lack
thereof) is quite difficult. Yet, we will try to examine the broad pros
and cons that these projects contribute.
Pros
Mediation, in itself, can be a unifying force but also can
hold a subjective eye to issues. For one, foreclosure mediation
allows for all sides to be openly discussing
similar issues. This means that communication occurs for a single case
during a focused of period of time, breaching disconnects that borrowers may
sometimes feel. Moreover, mediation can be a forum to confidentially
converse on particular situation; this allows for creative solutions to be
produced, principally for cases that may seem outside the box. Finally, mediation is not a court process.
That offers advantages in itself. It permits both parties to freely
discuss options and empowers individuals to make decisions on their own behalf.
Cons
Although mediation allows for effective and open dialogue,
it lacks many abilities. Mediation can serve as a setting for document
exchange and review; yet, mediation programs, and the mediators in them, cannot
resolve problems beyond the holistic process. Moreover, mediation cannot,
and should not, fix any corporations’ process. Many of mediation programs
ask for mediators to report on party behavior, or more specifically, servicer
behavior. This can crumble the confidentiality previously established.
With that being said, a program may decide that having an avenue whereby
one can report bad party behavior in foreclosure mediation is more important
than maintaining mediator ethics. Therefore, the system contains certain
flaws.
It is important to do your own research on foreclosure mediation
programs, as they will in the near future be affecting the state of Illinois.
Foreclosure can be an ugly process. This state and this country are
adopting new ways—whether healthy or not—in order to combat this housing
plague. If you are at all experiencing any foreclosure woes, do not
hesitate to call or contact our Oak Park attorneys. Our experience
should be on your side .
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