Orwall foreclosure measure already producing results

The Foreclosure Fairness Program, which is coordinated by the Department of Commerce and was launched on July 22, was created by the Foreclosure Fairness Act of 2011 to help struggling homeowners at risk of losing their homes by bringing fairness to the foreclosure process in our state.

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.

An anti-foreclosure Friday ahead - deadline for foreclosure loans and launch of mediation program

This Friday, July 22, is an important date for homeowners who are at risk of foreclosure. It is the deadline to qualify for the Emergency Homeowners’ Loan Program, which provides bridge loans to help with mortgage payments. But it is also the day the Foreclosure Fairness Act of 2011 goes into effect, so as one program ends, another one launches to give struggling homeowners a helping hand.

The Foreclosure Fairness Act of 2011, sponsored by state Rep. Tina Orwall this past session, created the Foreclosure Mediation Program to give homeowners facing foreclosure the chance to request a neutral, third-party mediator to come to a resolution with the lender.

The Des Moines Democrat said that she’s heard from homeowners who are basically given the runaround by the banks for years, and that this new program will offer them hope with the help of housing counselors and a mediation session with the lender to reach a solution that both parties can live with.

A community forum on the Foreclosure Fairness Act will be held on Thursday, July 21 for anyone interested in learning more about how the mediation program will work.

Attend the forum:

Foreclosure Fairness Act of 2011 public forum

Thursday, July 21 from 6:00 to 7:30 p.m.

Kent Lutheran Church

336 2nd Ave S, Kent, WA 98032

Visit the Foreclosure Mediation program’s website or call the Washington State's foreclosure prevention hotline: 1-877-894-HOME (1-877-894-4663) to find a housing counselor.

Read Rep. Orwall’s press release on the Foreclosure Mediation Program here.

For more information on the bridge loan program, visit the website or call 855-FIND-EHLP.

To read this blog post in Spanish, go here.

Orwall gets Housing Hero Award for Foreclosure Mediation bill

The Washington Low Income Housing Alliance recently presented the 2011 Housing hero Award to State Rep. Tina Orwall for her outstanding legislative work to lend homeowners a helping hand in the midst of Washington state’s worst foreclosure crisis.

“It was a great honor to receive this award,” said the Des Moines Democrat. “I am very proud of our work to create a fair process to protect homeowners and keep them in their homes whenever possible. I am grateful to the large group of stakeholders who worked tirelessly to make this happen.”

Orwall’s leadership will bring desperately needed solutions to struggling homeowners in the form of her Foreclosure Fairness Act of 2011, which created the Foreclosure Mediation Program that could benefit the 45,000 families expected to receive foreclosure notices this year.

The new law will bring banks and homeowners to the table to explore alternatives to foreclosure. It will require lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation. Foreclosure counseling will help homeowners understand all of their options and determine the best course of action.

The Foreclosure Mediation Program will begin July 22, 2011. Homeowners who wish to participate in mediation must be referred by a housing counselor or an attorney. For more information please call the hotline: 1-877-894-HOME (1-877-894-4663), or visit the program’s website: http://www.commerce.wa.gov/site/1367/default.aspx

To read this blog post in Spanish, go here.