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Foreclosure mediator helps people keep homes
(by Joan Demirjian - December 09, 2009)
Foreclosure mediator helps people keep homes
By JOAN DEMIRJIAN
Foreclosures of properties continue to rise everywhere, including Geauga County. However, now, there are alternatives to losing homes through a process that involves mediation between the homeowners and the banks holding their mortgages.
In Geauga County, a program is up and running that seeks to help people hold onto their homes by setting up a loan-modification schedule.
Christopher Horn, an attorney and Bainbridge resident, is the foreclosure mediator for the county. Mr. Horn, a former Bainbridge Trustee, has served in the newly created part-time position and works out of an office in the Geauga County Courthouse in Chardon.
The new program was initiated by the Ohio Supreme Court, which has recommended that each county establish a mediation program for foreclosure cases.
Statistics show the need for such a program, Mr. Horn said. In 2004, there were 243 foreclosures in Geauga County. In contrast, there were 500 or so this year, and a 16 percent increase in foreclosures is expected over last year, he said.
"In Geauga County, that's a substantial increase," Mr. Horn said. The houses in foreclosure include the entire spectrum, from $150,000 to $600,000 in price ranges, he said.
Primary reasons for the foreclosures range from loss of jobs, reduction in paychecks and sometimes health reasons. "They have these mortgages now that are more than they can afford," he said.
In many cases, they have temporary adjustments to their incomes, have been laid off and got behind.
Through the program, when they are served with notification of foreclosure, they can file a request for mediation in the mediation department of the courthouse. They must include financial information, which does not become a part of public record, Mr. Horn said.
"We review the request and financial information, they provide," he said. "The program allows the bank and the homeowner to get together with me. Many do not have their own legal counsel."
As a result of mediation, in some cases the mortgages are adjusted to fit the income of the family. "They work out a payment plan or agree to a lesser payment for a longer period, thus allowing people to stay in their homes," Mr. Horn said.
"Banks are more accommodating now and willing to mediate and work with people," Mr. Horn said of the current economy. They would rather have the home occupied than vacant and not being maintained, he said.
"Some banks will also do loan adjustments privately so they can get through the tough times," he said. There is the option to sell the house, but in some cases, the homeowner would get less than what they already owe on it, he said.
"Most people want to work it out, but they don't know where to turn," Mr. Horn said.
If it is a temporary situation, the hope is that with some accommodations with the bank, they can stay in the home. "The program is there to guide them through," Mr. Horn said.
"We get everyone together, and the bank's attorney has to be there so there is no misunderstanding," he said. The bank's representative has to be there or be available by telephone as well.
Geauga County Common Pleas Court Judge Forrest Burt asked Mr. Horn to consider serving in the position.
He is in the office two afternoons a week and all of Friday. Mediations are scheduled for about 1 1/2 hours. "We're trying to catch up with the need," Mr. Horn said.
"I think people are appreciative," he said. "Sometimes they are overwhelmed by the process." The message is that there is a program out there to help when people are in foreclosure and want to stay in their homes, Mr. Horn said.
Banks are realizing it's better to work it out, and the government program is there to assist with the banks, Mr. Horn said.
Mr. Burt said the Ohio Supreme Court has pushed for mediation programs as the number of foreclosures increase.
They decided to hire an attorney part time to do the work, paying him at less than what he could make in his practice. "He's kind of a volunteer for us, and we appreciate it," Mr. Burt said.
"The main thing we need is someone to talk intelligently, deal well with people and get the banks to the table," Mr. Burt said.
"This affects the entire county," he said. "Hopefully, it is not a permanent thing.
"This is a start and it's our way of reaching out," he said. The message is, "Don't give up. There are possibilities," Mr. Burt said. "The banks will work with you."
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