Mediation Helping Control Single and Multi Family Foreclosures
Cook County, Illinois, just like most areas of the U.S., is suffering from huge supplies of single family and multi family foreclosures. In an effort to help alleviate this problem, the county implemented a mediation initiative last year. Although foreclosed property numbers are still high, a number of homeowners have already benefitted from the program.
One year after its implementation, reports revealed that the program has already saved 216 properties from foreclosures list in Chicago and from county foreclosure listings. This represents around one third of a total of 627 properties whose owners applied for a slot under the program. The 216 homeowners received permanent loan modifications, reports have revealed, while another third agreed to leave their homes. The remaining number of applicants has reportedly failed to secure an agreement with lenders and actions are still ongoing in the countys courts.
The program was implemented in April of last year in an effort to lower the number of properties entering Illinois home foreclosure listings. A budget of $3.5 million was reserved for the mediation effort, which is being used to provide legal assistance to borrowers free of charge. Primarily though, the program aims to bring together lenders and borrowers to negotiate for an alternative to foreclosures. Recent reports revealed that an additional $3 million was provided to the project until November of this year.
Some local officials have admitted that Cook County is facing a challenging time in terms of budgets. However, the local government believes that the mediation effort is needed for the county to get ahead of housing problems caused by massive single family and multi family foreclosures. Meanwhile, reports have emerged that changes to the program are being considered to improve it further.
According to county reports, one of the recommended changes is to offer case management and home counseling services to suburban homeowners in the county who are facing possible foreclosure. Hiring a third party association to assess the program is also said to be under consideration. Data related to the program showed that as of the third week of April 2011, over 27,000 homeowners have already received legal advice from the program, while 1,820 have been referred to the people handling the mediation initiative.
Local officials are hoping that the program will continue to benefit homeowners in the area as single family and multi family foreclosures continue to hammer the region. As of the end of March 2011, around 85% of the more than 74,000 cases of foreclosures in the county are accounted for by residential foreclosures.
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