Why did things go better out West?

Just as Florida ended its mandatory foreclosure mediation program, the Justice Department praised Nevada's foreclosure mediation program in a recent report saying it provides a road map for other states to follow in addressing the continuing fallout from the housing crisis. Nevada, much like Florida, has some of the highest numbers of foreclosure filings in the country. In the report, data recorded by program staffers shows that since that program started, 13,813 Nevada homeowners participated. Of those, nearly 3,900 homeowners obtained loan modifications that allowed them to stay in their homes. More than 2,000 others agreed to foreclosure alternatives, such as short sales. Much like Florida, remaining participants of failed mediations blamed lender required documents or representatives without authority to take action. A drop-off in filings following robo-signing scandals may have skewed success, as well. However, the Justice Department apparently evaluated how states addressed the foreclosure crisis and singled out Nevada's program for developing policies and procedures other states could implement. See article - http://bit.ly/wg9N7O

Nationally, not many Foreclosure Mediation programs succeeding

Approximately 25 foreclosure mediation programs now exist in 14 states, but it is believed by some that they are not be as helpful to troubled owners as originally touted, such as in Maryland.

Unlike here in Orange County, FL, Prince George’s County, MD had only 56 successful home loan modifications before this summer through that state’s mediation program in an area devastated by the foreclosure crisis. A majority Black area heavily targeted by sub prime lenders in the boom years, that county is now staggering under the weight of abandoned homes and plummeting prices. One borrower reports to NBC that the mediation process there was a "gimmick" just to go through the formalities before desiring to foreclose.

Fortunately, here in Orlando under the program administered by the Orange County Bar Association, the lenders have been more serious on the whole about negotiating work-outs with owners who have demonstrable income and seek to stay in the home. Some HAMP modifications have been seen in the mediations conducted locally with qualified loans.

On the whole, however, there are troubled areas as mentioned above in Maryland and in diverse states like Nevada and New Hampshire (where in more than 100 cases, only 14 have reached settlements: http://bit.ly/oB7usW ).


http://today.msnbc.msn.com/id/43811197/ns/business-real_estate/