Tuesday, February 16, 2010

MCRC testifies in favor of SB 276 - foreclosure mediation

SB 276 applies lessons learned from foreclosure mediation programs in other states such as Connecticut, Maine, Nevada and South Carolina.

First, the Maryland bill would ensure that lenders/servicers provide homeowners with a comprehensive list of resources and options to help avoid foreclosure. This is important because in many cases, for instance, homeowners are unaware of the different state and federal programs such as HAMP that help homeowners stay in their homes.

Second, the bill gives homeowners an opportunity to hold a face to face meeting with a representative of the lien holder. This interaction has demonstrated success in similar mediation programs in Connecticut and Philadelphia. For example, Connecticut reports that 61% of mediated meetings have resulted in the homeowners keeping their homes. This success rate can be attributed to the value of the in-person meeting and the presence of a mediator that ensures both parties are acting in good faith to reach a compromise that is mutually beneficial. -- read more


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