The Residential Mortgage Foreclosure Diversion Pilot System
In April 2008, as a result to an alarming rise in the amount of domestic home loan foreclosures filed and sheriff product sales of domiciles planned, the Philadelphia Court of Common Pleas issued a broad Court Regulation which authorized the Court to implement a unique instance administration program, the Residential Mortgage Foreclosure Diversion Pilot Program.
This system ended up being envisioned being an intervention that is early to permit home owners possibilities to avoid foreclosure by means of numerous federal, state and neighborhood programs to facilitate loan work-out and/or reinstatement, when possible.
The method started with postponement of this instances regarding the April 2008 and May 2008 Mortgage Foreclosure Sheriff purchase list. Domestic property owners were become identified so conciliation conferences, presided over by the Court, could happen, bringing defendants and lenders/servicers’ representatives one on one. Participation by loan providers had not been mandatory, but. An activity force of housing counselors, general public interest attorneys and agencies, and volunteer lawyers surely got to work shaping this program making it work as envisioned, working out of the snags and filling out the operational details.