From: Mayors Press Office
To: Richardson, Kerri L
Sent: Tue Jun 30 10:47:01 2009
Subject: New Program Helps Homeowners Facing Foreclosure

 

FOR IMMEDIATE RELEASE                    Media Contacts:

June 30, 2009                                                  Kerri Richardson, 574-1903 / 216-0426

Meagen Peden Agnew, Legal Aid, 614-3110

 

New Program Helps Homeowners Facing Foreclosure

Mayor encourages homeowners to take action

 

(LOUISVILLE – June 30, 2009) – Mayor Jerry Abramson and Congressman John Yarmuth joined Jefferson County Circuit Court judges today to launch the Foreclosure Conciliation Project, a program that that uses the power of the courts to encourage lenders and homeowners to explore alternatives to foreclosure.

 

The project offers homeowners an opportunity to meet with their lenders before any foreclosure sale occurs. Homeowners who follow the program’s steps and meet with their lenders will learn about options such as forbearance agreements and loan modifications.  While participation in the program will not slow the foreclosure process, local judges have agreed not to sell the homes until the conference between homeowner and lender occurs.

 

“For many homeowners facing foreclosure, connecting with their lenders is difficult.  This program arranges an opportunity for homeowners and lenders to meet and communicate about options,” Abramson said.  “The foreclosure process can be bewildering.  Having a clear plan to follow will make this process less traumatic and more educational for the homeowners.”

 

“In Washington, we have enacted several bills that will provide much-needed support to homeowners facing the devastation of foreclosure,” said Yarmuth. “And now, with this expansion of the Foreclosure Conciliation Project, we will keep more Louisville families in their homes and have a better response to the housing crisis here on the ground.”

 

Last year, 3,264 foreclosures were filed in Jefferson County, with 2,048 of those homes sold at a foreclosure sale.  Foreclosures occupy 40 percent of the Jefferson County Circuit Court’s entire civil caseload.  If this rate continues, filings will approach 5,000 by the end of this year.

 

“A foreclosure sale displaces families, disrupts neighborhoods, and drains wealth from our community,” said Chief Judge Jim Shake.  “If we can use our resources to encourage communication, offer alternatives, and prevent significant losses to families and neighborhoods, then we as a community have a responsibility to do that.”

 

How it works

The foreclosure process begins when a homeowner receives a foreclosure complaint from the Jefferson County Circuit Court Clerk’s office.  The Clerk’s office includes information about the Foreclosure Conciliation Project with this complaint. 

 

Once homeowners receive the foreclosure complaint, Making Connections Network staff and AmeriCorps volunteers personally visit homeowners and encourage them to participate in the program.

 

“Our staff and community volunteers will show up at the front door and knock to make sure homeowners understand this important information,” said Dana Jackson, Executive Director of Making Connections Network.  “Homeowners in foreclosure are the target of a lot of scams.  We need them to know that the Foreclosure Conciliation Project is a legitimate offer to explore alternatives to foreclosure and to work with a HUD certified housing counselor.”

 

The program is structured so that it causes no delay in the ordinary foreclosure process.  Consequently, it is critical for homeowners to consult with an attorney and file an answer to the foreclosure complaint within twenty days of receiving it.

 

Once enrolled in the Foreclosure Conciliation Project, homeowners may:

 

·           Attend a free clinic at the Legal Aid Society to learn about the foreclosure process and alternatives to foreclosure;

·           Complete a financial packet with the help of a HUD-certified housing counselor;

·           Present that financial packet directly to the lender in advance of the conciliation conference;

·           Engage in a conciliation conference with their lender to explore alternatives to foreclosure.  A pro bono attorney will be available to assist homeowners at their conciliation conference.

 

If a homeowner completes the required steps on time and requests a conciliation conference, the court will not sell a home until the conciliation conference occurs. 

 

“No one wins when a house is sold in foreclosure,” said Jeremy Rettig, an attorney with Lerner, Sampson, & Rothfuss and a member of the Foreclosure Conciliation Working Group.  “The goal of the Foreclosure Conciliation Project is to help lenders and homeowners negotiate win-win arrangements efficiently.”

 

Partners in Foreclosure Conciliation Project

The Foreclosure Conciliation Working Group includes the Jefferson County Circuit Court, Legal Aid Society, Kentucky Homeownership Protection Center, Louisville Urban League, Housing Partnership, Inc., the Making Connections Network, Louisville Bar Association, Jefferson County Office of the Circuit Court Clerk, Louisville Metro Government, and a collection of creditor’s attorneys.

 

The Foreclosure Conciliation Project is modeled after a successful foreclosure diversion program in Philadelphia and is supported by generous funding from the Annie E. Casey Foundation.

 

Residents who are interested in enrolling in this program should contact the Protect My Kentucky Home Hotline at (866) 830-7868 or visit http://www.kyhousing.org/protect. 

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