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Few homeowners seeking mediation for foreclosure problems

When foreclosure looms, mediation offers lifeline

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By Steve Bennish, Staff Writer Updated 10:59 PM Sunday, August 30, 2009

DAYTON — Montgomery County Common Pleas Court is taking some heat for neglecting court-ordered mediation as an option to save foreclosed homeowners.

Since Jan. 1, only a small number of local homeowners threatened with foreclosure — about 20 — have tried a last chance with mediation ordered by judges. That’s a fraction of the 3,000 foreclosures filed in the county this year.

Fair housing advocates say other counties, such as Franklin, are far more aggressive in pursuing mediation as an option to keep people under roof.

“We certainly need to explore what they (Franklin County) are doing and how we can accomplish the successful goals and numbers that they have,” said Randall J. Smith, attorney for Miami Valley Fair Housing. “We have comparable rates of foreclosure.”

Judges and attorneys blame consumer ignorance of legal options, lack of money for legal help, an overwhelmed court system and simple resignation by homeowners for the low participation.

“If I thought there was a chance of some resolution, I would order it,” said Montgomery County administrative Judge Michael T. Hall.

Ohio counties have been under pressure from the Ohio Supreme Court and housing advocates, to push mediation — or a supervised settlement with a lender — when there’s a chance of staving off a foreclosure.

Franklin County as of June counted 870 requests for mediations from borrowers, including 290 that were judge referred, said Saundra Cunningham, project coordinator for Franklin County’s Foreclosure Mediation Project. She said that 80 percent of the cases referred by judges are going through the mediation process.

“Of those that do not participate, generally it is because they have already moved from the property and are unaware of their rights,” Cunningham said.

Keep reading: Court can't help those who don't seek option

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@Why Now: I don't know your situation, but for at least 2 years now, there have been mutiple programs helping people in foreclosure - and trust me, they are not there to take people's money. One of them that I know of was giving $5000 to get people out of foreclosure. Not a loan, no application fee, no program to join, just five grand handed to you. But if people don't make enough to pay the payment, what is the point of getting them caught up? Some people want to believe they can afford more.

nothing new
3:37 PM, 8/31/2009

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@ nothing new...well, most of those agencies that are supposed to "help" you just want to steal your $. Believe me, I turned over every stone and waded through every book, internet site and anything else I could get my hands on. There were NOT programs then like there are now. However, that is all water under the bridge now and I have moved on. But believe me, the help was NOT there when I lost my home.

Why Now??
1:32 PM, 8/31/2009

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Bev...you have no idea what I had, the type of home I had, etc. I, in no way, shape, or form lived beyond my means. I have no before-warning that my job was ending. Not everyone had/has that luxury...I guess you are just one of the lucky ones who can foresee the future. Please do not assume that we did this to ourselves...you know nothing about each situation.

Why Now??
1:26 PM, 8/31/2009

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@Why Now & Frustrated: You keep saying "all of a sudden there is help" when these programs have been around for years. Some of the lenders don't want to work with people, and they are the ones with the highest foreclosure rates. I work for one of the agencies that has been giving foreclosure help since early 2008.
And yes, I have my job, but our household income is down about 60%, so I'm not stranger to "making ends meet". And so far we haven't had to ask anyone for help, but I know it's there.

nothing new
1:25 PM, 8/31/2009

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@ Bev Well not everyone was as lucky as you to have the heads up about their jobs!! By the way not everyone that has lost their house was living beyond their means.

Frustrated
12:54 PM, 8/31/2009

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