Wednesday, October 08, 2008

NJ AG Working On Pilot Mediation Project For Homeowners Facing Foreclosure

In Trenton, New Jersey, The Star Ledger reports:
  • [New Jersey Attorney General Anne] Milgram [...] said her office was working with the Public Advocate's Office and the Department of Banking and Insurance on a pilot project that would help homeowners avoid foreclosure.

  • The project, expected to start in November, would provide mediators -- volunteers from the legal community -- to help 100 homeowners negotiate with mortgage services. She said a similar program in Iowa during the early 1990s farm crisis proved effective at helping farmers keep their property. "The pilot program will be evaluated to determine the best way to expand the project -- most likely through the development of a hotline or asking lenders and housing counselors to more widely publicize the program with those who face foreclosure," Milgram said.

Source: N.J. state investigators to probe Lehman Brothers.