Consumer Law

ACORN Report Urges Other Communities to Adopt Philadelphia Approach to Reducing Foreclosures

By Jeff Sovern

ACORN has released a report, Road to Rescue: How the Philadelphia Model Can Reduce Foreclosures Across the Country.  Here's an excerpt from the Executive Summary:

Philadelphia has pioneered an innovative and remarkably effective foreclosure prevention program that requires lenders to sit down with borrowers and negotiate a mutually agreeable solution whenever possible. Approaching the one-year mark of the program?s initiation, more than three out of four homeowners who  have entered the program remain in their homes today, where in other jurisdictions they would have lost their homes. The Philadelphia program is so effective because it is mandatory, uses very effective community outreach, is easy for homeowners to participate in, and utilizes the expertise of housing counselors. Other mediation programs we investigated are less effective for lacking some of these characteristics.

Our review of monthly foreclosure statistics in 30 counties across the country and all 50 states shows that the foreclosure crisis continues to pose a serious threat to homeowners, communities, and the economy. Implementation of a mandatory mediation program as effective as Philadelphia?s will save these communities untold tragedies and significant economic losses. The federal government should invest in these successful local programs to complement the Administration?s efforts. This report examines the dire necessity for ongoing innovation, vigilance, and resource allocation to foreclosure prevention, and examines the benefits of widespread mediation in restoring our housing market and broader economy to health.

Full post as published by CL&P Blog on April 28, 2009 (boomark / email).