The stop foreclosure process has been stepped up in Indiana by state judges, legislators, lawyers and professionals.
This week, Indiana Supreme Chief Justice Randall Shepard informed the public that over 1,000 judges, lawyers and foreclosure prevention mediators have completed their training to be able to handle foreclosure cases better.
Under the leadership of Judge Shepard, these trained professionals will work with the Indiana Housing and Community Development Authority to conduct and mediate foreclosure prevention conferences between lenders and distressed borrowers.
A new law passed through the efforts of Indiana Senator Karen Tallian will also help facilitate the mediation process. The law requires lenders to inform homeowners at risk of foreclosure that they have the right to have settlement meetings with lenders under the court mediation program.
Tallian explained that homeowners can obtain favorable settlements with their lenders if they are guided through the process by trained professionals. Face-to-face negotiations are much better than negotiations over the phone where documents cannot be studied immediately.
The senator also said that since the mediation notification law was implemented in August, over 300 settlement meetings to stop foreclosure process have been requested.
In 2008, more than 45,300 foreclosure actions were filed in Indiana, a sharp increase of 50 percent over 2004 filings.
In the third quarter this year, more than 12,100 housing units were notified of defaults or foreclosures and more than 5,200 units of these were already real estate-owned. Although the pace of foreclosures in the state slowed, Indiana still ranked high among states in foreclosure rate. In the third quarter ranking of foreclosure rates, Indiana was 20th, with one out of every 230 households getting hit with a foreclosure posting.
Judge Shepard said that he planned to train more lawyers, judges and professionals so more troubled homeowners can be helped. During the training sessions, participants are encouraged to provide legal assistance for free to homeowners asking for help.
Among the organizations and agencies that helped conduct more than 30 sessions were the Indiana Foreclosure Prevention Network, Indiana Pro Bono Commission, Indiana Commission on Continuing Legal Education and the Office of the Indiana Attorney General. Law firms and bar associations across the state also helped.
According to Indiana Attorney General Greg Zoeller, the settlement meetings were designed to stop foreclosure process more effectively. Before the meetings, the logistics are organized so the needed paperwork, the mediator, the homeowner and the authorized lender representative are all present at the scheduled meeting.