What Can Be Expected from Moratorium on Foreclosures
One of the 11 mediators known to many is Edmond O’Garro. His average workload is 10 meetings a day. He is engaged in making residents and lenders reach a compromise that will hopefully help the residents in their problems with their soon-to-be foreclosure properties.
Extending the time for these meetings is what Governor Rell is hoping to put into action. He plans this kind of meetings on foreclosures not only for a couple of weeks, but for at least six months.
This might sound like a good plan but the statistics are not looking good. The figures show than in 5,513 cases of foreclosures, only 1,553 were able to have mediations. And out of this small number, only 680 cases produce a nice outcome. For the 12 mediators, extending the time only means more work since the problem has nothing to do with time.
Palmer seems to agree since the mediation happens in the first 10 days with the knowledge of the residents. The number of houses facing foreclosures continues to rise which is why extending the time will do little. Cases of foreclosure homes take three to four sessions to reach a positive compromise.
O’Garro says that this program will also mean more mediators will be needed as well as more funds, which will actually be a tall order – and something that will not be considered as good news.
The salaries of these mediators is fairly high which is why extending time to allow them to do more work means that they should be compensated more. Such a case may actually bring more problems in the state of foreclosures in the country.
Other adverse side effect of this move is that it can actually bring more problems to the residents since it is very time consuming. Because of the said effects, this move seems to produce more problems than solutions, which is why lawmakers will be in for a wild ride. Taking time to consider this program is of the essence.
Related Posts:
- Mediation Program to Avert Growth of Foreclosure Properties
- Support Group for People Facing Repo Properties Problem
- Wisconsin Sheriffs Struggle as Foreclosures Continue Upswing
- Government Announces Much-Awaited Anti-Foreclosure Program
- New Strategy to Stall Banks’ Foreclosure Gaining Popularity
