Day One Of Philly Foreclosure Diversion Program "A Madhouse"

In Philadelphia, Pennsylvania, The Philadelphia Inquirer reports on the first day of the implementation of the local court's Residential Mortgage Foreclosure Diversion Pilot Program, a program that housing advocates around the nation reportedly say is among the most innovative they've seen, because it involves the court, consumer advocates and mortgage lawyers.

• It was a madhouse in City Hall courtroom 676 yesterday. There began day one of a court pilot program to help financially troubled homeowners avoid foreclosure by talking - talking directly to the lawyers who represent lenders and working out deals, on the spot, to begin paying regularly or to give up and move on.

• Gone was the usual silent, churchlike decorum, replaced instead with knots of lawyer volunteers conferring in corners with brand-new clients, ever-growing stacks of files piled precariously on tables, mortgage lawyers answering calls on cell phones, and dazed-looking homeowners hoping that out of all the chaos would emerge a way for them to keep foreclosed homes that had been destined for a sheriff's sale. And it will continue today and the rest of the week.

For more, see Homeowners offered relief in Philadelphia program.

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