Major victory for homeowners facing foreclosure

Friends,  A major victory for homeowners facing foreclosure has been achieved as President Judge Darnell Jones has postponed sales of all owner occupied homes scheduled for the May Sheriff Sale in Philadelphia.  This follows Sheriff Green's postponement of the April Sheriff Sale.  Homeowners and advocates have worked hard to win a reprieve on foreclosures in Philadelphia.

Judge Jones has set up a system where homeowners will be directed to housing counseling to attempt to negotiate an affordable work out with the mortgage servicer and then a Conciliation Conference presided over by the court would be held between the homeowner and the lender if no solution were reached.  The court could refuse to allow a sale if an affordable loan modification or other work out were not offered to resolve the situation.  While this is a pilot project with many details to be worked out, the potential is here to have court intervention to press lenders to modify loans so that homeowners can make payments and keep their properties.  Investors will benefit from securing performing loans and by avoiding the costs of foreclosure. 

Philadelphia's housing counseling agencies will have a key role in the program by assisting with work out efforts and often representing homeowners at the Conciliation Conference. The Court Order is attached and  links for press coverage of the new system are below. 

John Dodds

Mortgage Forclosure Pilot Program (PDF) | Advocacy key to Philadelphia foreclosure plan |
Philadelphia devises program to stem foreclosures | Philadelphia works on plan to help avoid foreclsoures