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Legislative Hearing On Ma Foreclosure Mediation Program Bills: Written Testimony To The Joint Committee On The Judiciary, Susan Jeghelian, Madhawa Palihapitiya

Massachusetts Office of Public Collaboration Publications

The inability of homeowners to communicate with holders of securitized mortgage obligations has been a significant barrier to completing affordable loan modifications that might prevent foreclosures or minimize losses and keep more homeowners in their homes. Increasingly, legislators and the courts are looking at mediation as a potential solution to the problem.

In a little over a year, from mid-2008 to mid-2009, more than 25 distinct foreclosure mediation programs were launched in fourteen different states. State legislatures, state supreme courts, and local courts played roles in creating these programs. Mediation is being favored over litigation due to concerns such as …