This report reviews foreclosure mediation programs established in 21 states. It describes the programs' structures and provides settlement statistics, where available. The authors argue that mandatory mediation programs have proven to be more effective than voluntary, or opt-in, programs; the two types of programs have similarly high settlement rates, but mandatory programs obviously have higher participation rates. The authors also argue that programs should not spend court resources on mediation eligibility hearings. Rather, eligibility for mediation should be judged on broader guidelines and cases that qualify should be sent straight to mediation. The authors encourage states to increase their use of mediation, by either expanding existing local programs or adopting new statewide initiatives.
Now We're Talking: A Look at Current State-Based Foreclosure Mediation Programs and How to Bring Them to ScaleCohen, Alon; Jakabovics, Andrew. Jun. 1, 2010