Philadelphia Plan

By
Real Estate Agent with Coldwell Banker Ed Schlitt

Did anyone else hear about the plan in Philadelphia that prohibits any foreclosure action by a mortgage lender until the lender representative sits with the homeowner in a mediation session monitored by a professional mediator, often a judge.  The people being interviewed were quite positive in their reviews.  For example, a mortgage lender representative said that for the first time rather than a foreclosure procedure being a lose - lose situation for both the homeowner and the lender, the mediation process was often successful in working out a collaboration that modified the mortgage rates and terms so that the homeowner could meet the payment schedule and stay in their home.  What is your opinion? 

Does anyone who lives in Philadelphia have some experience with this mediation initiative?

Comments (3)

Chris Horton
Horton's Lawn Care L.L.C. - Burton, MI

I think this (or atleast something similar) may be the wave of the future really. Turns a lose lose into a possible win win. The banks know they are going to lose money either way, but may not lose as much this way. And the homeowner who loved their home may get to stay in it.

Aug 06, 2008 02:26 PM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

A similar "moratorium" has been in place here in MA since June.  The atty gen had found that most lenders weren't communicating with owners and that many loans could be worked out if the lender would communicate.

Aug 06, 2008 02:33 PM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

This is the way it should be.  This way, both parties get to express their thoughts to the other to create an understanding.  It also keeps the greedy unscrupulous parties from running interference.

Aug 24, 2008 09:54 PM