Foreclosure program brings homeowners and lenders together

SPRINGVALE, Maine (NEWS CENTER) -- People faced with foreclosure have help working through the process thanks to a new state program.  The Foreclosure Diversion Program started in York County on a trial basis late last year, but the program's success bringing lenders and homeowners together to meet with a trained mediator has allowed it to expand statewide.

"What this does is gives and opportunity for the homeowner to come into a place that is a neutral place," said Chet Randall, an attorney with Pine Tree Legal Assistance who coordinates their involvement in the program.  "(The Foreclosure Diversion Program) is supervised by the court process, and it requires that a servicer to be on the phone and answer questions and to verify receipt of documentation and information regarding their financials, and make decisions.  The homeowner has an opportunity to ask questions and if the questions are not answered, they have the ability to ask again until they do get the answers that they need."

The main difficulty for many homeowners going through the foreclosure process has been finding answers, or even someone at their lending institution who is authorized to work with them on modifying their loan.  The program is designed to bring interested parties together and find a resolution that is beneficial for both.

"Our program is triggered after a foreclosure complaint has been filed and the process has been initiated,"explained Lauren Blake Weliver, the program's manager.  "If a homeowner is served with a foreclosure complaint, now that the program is operating, if the homeowner responds to the complaint they will be automatically referred to our program."

"The process is overwhelming at first," said Weliver.  "The informational sessions were designed to give the homeowners an opportunity to learn about the process and to also connect them with some information to prepare for mediation."

The program works like this; homeowners attend an informational session held in a courtroom to learn about the program, the foreclosure process and services that are available to assist them through the process.  After the homeowner and lender exchange financial information, the parties come together with a trained mediator to see if they can come up with a plan on which both sides agree, though the agreement is voluntary.  According to the judge overseeing the program in York County, about 65% of foreclosure cases have been resolved through mediation since the program began.

"This is an opportunity for everybody to get on the same page and talk to each other in the same language about the same problem and try to resolve it," said Randall.  "Maybe the answers aren't always what they want to hear, but at least they are able to get the answers that they haven't been able to get in the past."

You can find more information on the Foreclosure Diversion Program by clicking here.