With the number of foreclosures for sale increasing at an alarming rate all across America, various government agencies as well as other organizations including mortgage companies are showing increased participation in order to help distressed home owners as well as promote the sale of these properties. While various prevention programs have been in place since last year, the mediation program that has been launched by the judiciary has proved to be highly effective towards the prevention of foreclosures and has become one of the most successful prevention schemes to help home owners save their properties from being repossessed by mortgage companies and banks.
Under the government’s mediation program for foreclosures, the State judiciary council has allotted various members to work with home owners who are facing an impending foreclosure by acting as a mediator between them and the loaning agency. This scheme has received a very positive response from home owners and has also had a very good success rate. According to various news reports on the foreclosure mediation program, the state of Florida has reported a very high success rate under which 75% of the home owners who had come forward to take assistance from the counselors were able to come to a successful agreement with the lending authorities.
While this scheme has been launched since two years some major reforms have been put into place this year which has further increased the success of this scheme. The effectiveness of the current reforms is also reflected in the fact that while the mediation program had a success rate of 62% last year, this percentage has increased to 13% within the first half of this year all across the U.S. According to the website of the judicial branch in Texas, the program has received participation from 43% of home owners who have been facing an impending foreclosure as compared to last year’s 35%.
Apart from helping home owners in preventing foreclosures through their mediation program, all the State Judiciaries have also made a repository section in their website with vital information on the various stages of foreclosures as well as details of support organizations which can be contacted by distressed home owners who are seeking financial help. According to one of the program managers at a judicial branch most foreclosures have been prevented through this scheme simply by making home owners more aware of their circumstances through counseling and by establishing better communication channels with the lenders.

This entry was posted on Monday, August 9th, 2010 at 11:01 am and is filed under Foreclosure News.