Foreclosure Mediation Programs: A Crucial and Effective Response by States, Cities, and Courts to the Foreclosure Crisis

Abstract

Housing is the single most important asset for the majority of American households and a pillar of the American economy. The current U.S. home mortgage foreclosure crisis has a staggering impact on homeowners, lenders, families, neighborhoods, municipalities, and states. Foreclosure mediation programs are an effective response by states, cities, and courts to address the impact of the foreclosure crisis. Mandatory foreclosure mediation programs help homeowners keep their homes and aids communities in maintaining property values while saving lenders and investors the expense of executing a foreclosure. By examining the foreclosure crisis in Missouri and Illinois and the various foreclosure mediation programs around the country implemented in response to the crisis, this Article proposes best practices for successful foreclosure mediation programs and advocates for jurisdictions to establish these programs to curtail the devastation caused by the foreclosure crisis.