Philadelphia Implements Residential Foreclosure Diversion Program

(original post 4-27-08)
In Philadelphia, Pennsylvania, Judge C. Darnell Jones, President Judge, Court of Common Pleas and D. Webster Keogh, Administrative Judge, Trial Division, both of The Philadelphia Courts - First Judicial District, recently issued a General Court Regulation establishing a Residential Mortgage Foreclosure Diversion Pilot Program for the City of Philadelphia. Under the program, Philadelphia homeowners faced with foreclosure will have the opportunity, after seeing a housing counselor, to take part in a "Conciliation Conference" in which the parties try to work out an affordable modification of the loan or an affordable payment arrangement. According to the court's news release:

• The Pilot Program authorizes the Sheriff Sale of non-residential and non-owner occupied premises as previously scheduled, but requires owner occupied residential premises to be scheduled for a Conciliation Conference before the Sheriff Sale can occur. [... T]he term “Residential Premises” means real property located within the City and County of Philadelphia containing not more than four residential units and shall include a residential condominium unit or a residential co-op unit.

• The main goal of the Conciliation Conference [...] is to insure early intervention in determining eligibility under various federal, state and local programs established to facilitate loan work-out and other solutions to permit residential homeowners to retain their properties.

Philadelphia homeowners in foreclosure seeking to participate in the Pilot Program are required to call immediately upon receipt of the Case Management Order in their foreclosure case the SAVE YOUR HOME PHILLY HOTLINE at (215) 334-HOME and the Defendant-homeowner will be directed to a housing counseling agency.

The court has acknowledged and thanked the Philadelphia Bar Association for its assistance in securing competent pro bono representation of unrepresented Defendants who cannot afford to retain counsel.

For more on Philadelphia's Residential Mortgage Foreclosure Diversion Pilot Program, see:

• Pilot Program News Release (announces the Pilot Program),
• Joint General Court Regulation No. 2008-01 (adopts and implements the Pilot Program),
• Court Order (specifically affects status of sheriff sales originally scheduled for April 1, 2008, and sales scheduled for May 6, 2008).

Go here for other posts on the Philadelphia Residential Mortgage Foreclosure Diversion Pilot Program.

Thanks to attorney Donald Marritz of Regional Housing Legal Services in Pennsylvania for the heads up on the announcement and for copies of the April 16th court order and Reg No. 2008-01.