What happens when you invite people to a party, but no one shows up?
This is happening with foreclosure mediations in the Dayton area. According to an article in the Dayton Daily News (here), of the 62 cases referred to mediation in Montgomery County, 40 homeowners failed to respond. Seven were settled, 13 are pending, and 2 were canceled.
What does this mean when almost 65% of the folks don't show up? And I think most people would conclude that mediation of foreclosure actions is designed to help the homeowners.
Similarly, in Franklin County, the administrator for its Foreclosure Mediation project is that "30 percent" of the completed mediations are keeping their homes.
In Nevada, after expecting 1,250 and 1,500 homeowners a month flocking to a foreclosure mediation program, only 10 homeowners requested mediation--during a six week period. Click here for the article.
My initial thought is that mediators need to educate homeowners about the benefits of mediation. But it may also be that the mediators aren't able to get in contact with the borrower to talk with them in the first place. Also, it may be the the borrower identifies the situation as hopeless and would rather turn resources toward starting over instead of trying to maintain what is perceived to be an impossible situation.
Regardless, mediation can be a very effective tool in helping lenders and borrowers come together and see if a workable solution exists.
1 comment:
Every investor must start-up a plan before heading up on buying a property. Learning the basics of real estate is essential rather than visualizing the money aspect. Listen to skilled professionals like bankers, estate agents, home inspectors, etc., they most likely know the latest trend.
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