In this short video, Rep. Tina Orwall, who sponsored the legislation, talks about the program with representatives from the Department of Commerce and the Housing Finance Commission, as well as the Mayor of Kent, a real estate agent, a housing counselor and a homeowner facing foreclosure.
The new law brings banks and homeowners to the table to explore alternatives to foreclosure. It requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation. Foreclosure counseling is helping homeowners understand all of their options and determine the best course of action.
Adding housing counselors and third-party mediation to the foreclosure process levels the playing field between homeowners and mortgage lenders. And having the opportunity to sit down face-to-face with the bank gives struggling homeowners a real chance to work out the best possible outcome for their specific situation.
So far, so good—the Foreclosure Fairness Program by the numbers:
Housing counselors
Currently: 69
Projected: 132
Mediators
In July, the Washington State Department of Commerce trained over 200 mediators, which will ensure approved mediators throughout the state. Two thirds of them are Dispute Resolution Center employees and the rest are attorneys or retired judges.
Mediations requested
As of yesterday, August 22, 2011, Commerce had received 220 referrals to mediation. About 43 percent of these are from King County and 22 percent are from Snohomish County. The first mediations should take place next week (August 29).
For more information please visit the program’s website: www.commerce.wa.gov/foreclosures
To read this blog post in Spanish, please go here.
