The Federal Reserve Bank of Boston has recommended that the various states of the nation trying to find reasonable ways to assist homeowners avoid possible foreclosure should pay attention to processes established in New England by each of the six states in that region. Each of the involved states has its own process, some different from the others, most at least similar to the others, but all worth paying attention to, and learning from, as ways to help struggling homeowners dig themselves out of trouble and save their homes.
Five of the states have mediation programs, while my original home state, Massachusetts, has a program that allows negotiation without the services of a mediator. Why is mediation better than financial assistance? The answer is simple. In the former, a homeowner doesn't have to achieve a specific income or credit standard, as is common in assistance programs. Statistics indicate these programs are working as well. Connecticut, for example, show that 78% of those involved in its mediation program saved their homes from foreclosure. The Boston Fed has also recommended making the participation in such programs automatic for homeowners in a default situation.
Another state taking similar action in analyzing its mediation program's success is Florida. However, in this case, it wasn't the Fed doing the analysis. It was the state's Supreme Court.
How does this affect you? Well, if you're in one of the New England six, you can get in touch with the state for info as to how to attempt participation. Ditto for Florida. If you're not in one of these states, check with your state government to determine if it has some form of mediation program, or is planning to start one. In either case, get the info and then, if it makes sense, get started. The home you save would be your own!
Good luck.
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