Philly Foreclosure Diversion Program A Model For A Larger National Program?

An editorial in the Philadelphia Daily News opines:

• [P]hiladelphia is offering [city] homeowners and lenders caught in the crisis a practical route to resolution. A new program called the "mortgage foreclosure diversion program" provides court-sanctioned negotiations between lender and borrowers to try to resolve troubled loans to avoid foreclosure. What the program also avoids is the need for long-term foreclosure moratoriums, which provide relief for homeowners, but are legally problematic.

• This new program puts owner-occupied properties facing foreclosure on a special administrative track that would give homeowners access to housing counseling and pro-bono legal advice. [...] Part of the new program is a hot line - 215-334-HOME - that puts callers in touch with legal and other help. [... W]e're glad that the city has officially recognized this fact and is playing an important role on the committee. [...] This program may not only provide relief for Philadelphia homeowners, but could be a model for a larger program on a national scale.

For more, see New Hope On Foreclosures (Program Gives Time And Help To Homeowners).

For more on Philadelphia plan, see Philadelphia Implements Residential Foreclosure Diversion Program.