Mandatory Mediation Saves Families from Home Foreclosure

Mandatory Mediation Saves Families from Home Foreclosure
as States try to force mortgage workouts

The Wall Street Journal
December 31, 2010

Although about 20 states offer some mediation program for banks and homeowners before foreclosure proceedings are initiated, there are only five states or cities that make this type of mediation mandatory. The mandatory mediations have shown a much higher success than the voluntary mediation programs.

Mediation works! When parties are forced to try mediation, many yield successful results. Because parties do not reach a mediation agreement unless they voluntarily agree, fears about powerful parties are alleviated.

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Comments

[Ben Ziegler]

Thanks for bringing this to our attention. While its intervention on the part of the state (to force mediation), it also serves to highlight the potential impact of mediation in a different context - foreclosures... a good thing. Nice to see some government initiative. Hopefully in the long term, people and organizations will seek out mediation more vs. having it imposed.

[Mikita]

Thanks for your input Ben! As mediation becomes a more popular alternative, ideally parties will voluntarily choose to enter mediation without the intervening “encouragement” by the state! Until that day, intervention by the state is a great way to teach parties about mediation and introduce mediation to new fields---like dealing with the rapid increase in home foreclosures.