Pilot Program Aims To Reduce Philly Foreclosures

In Philadelphia, Pennsylvania, the Philadelphia Business Journal reports:

• The Philadelphia Common Pleas Court Wednesday announced details of a pilot program it hopes will reduce the number of foreclosures in the city. The plan was ironed out by a foreclosure steering committee headed by Judge Annette Rizzo that includes lawyers representing lenders and homeowners as well as social service agencies. Owner-occupied properties will be put on a special track intended to help borrowers with free legal advice and housing counseling.

• All residential foreclosures will be subject to a conciliation conference before the property can be sold via Sherriff's sale. The conference must be held within 30 to 45 days after a complaint is filed and the homeowner and lender must be present. The homeowner will be require[d] to get housing counseling five days before the conference and cooperate fully with a counseling agency, which will provide a report at the conference regarding the possibility of a loan work-out. If a homeowner does not respond to notices, does not appear at the conference, or if it is determined no work-out is possible, the lender can proceed with the foreclosure process.

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• Michael McKeever, managing partner of Goldbeck McCafferty & McKeever, a law firm that represents lenders in foreclosure proceedings, serves on the steering committee. He said lenders will also have to respond faster to work-out proposals from homeowners and their representatives. "We think this program will create some efficiencies and dispel the myth that lenders are not being cooperative," McKeever said.

For the story, see Details of Phila. foreclosure reduction effort announced.

See also, Philadelphia Inquirer: Advocacy key to Philadelphia foreclosure plan.

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