The City of Philadelphia has experienced some success from its pilot Foreclosure-Diversion program, and many other cities are beginning to take notice and considering implementing this program in an effort stop rampart foreclosures that are destroying home values, and subsequently their property tax base.
What It Is:
The Foreclosure-Diversion Program contacts a manager or other individual with the power to modify a home loan from the lender to sit down with homeowners (represented by pro bono lawyers,) in front of an arbitrator so they can try to find an affordable way for the homeowner to keep their home.
The Results
Over the inaugural year of this program, some 5,000 homeowners in Philadelphia participated in the program with 1,400 of them finding a way to avoid foreclosure. That’s a 28% success rate, not too bad. This does not include the 700 homeowners who were able to postpone their foreclosure auctions so they can continue negotiations. All said the program helped about 41% of the participants.
Granted this program started before the Obama Home Relief Plan, but it still provides a model that other cities and counties can model to protect the interest of homeowners in their districts.
Does your city or county have a foreclosure-diversion program in place? How does it compare to the one in Philadelphia?