PORTLAND, Maine (2/25/13)--"The foreclosure process is too long" was the overwhelming consensus from respondents to a recent survey by the Maine Credit Union League. The survey asked all credit unions in the state about the Foreclosure Diversion Program, established in 2009 as part of foreclosure legislation passed, so the league could gauge how well it is working.
"Anecdotally, we have been hearing that for the past couple of years but what the survey is doing is providing us with real examples and feedback from credit unions," said Quincy Hentzel, league director of governmental affairs (Weekly Update Feb. 22). "While the league and credit unions are supportive of the Foreclosure Diversion Program, there may be an opportunity to explore and propose ways to make it better. The league will evaluate our options to have the feedback and concerns of credit unions about the length of the process addressed."
The survey will help determine the successfulness of the program and whether the league will recommend any changes to increase its effectiveness or efficiency.
An Act To Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary Foreclosures, passed by the Maine Legislature, established the Foreclosure Diversion Program. Its purpose is to assist homeowners and lenders in achieving mutually agreeable resolutions to mortgage foreclosure actions through the mediation process.
The Maine Supreme Judicial Court was required by law to report on the program to the state legislature by Feb. 15. Based on the court's report and recommendations, the legislature may introduce legislation to amend or enhance the program.
Several states are considering laws to streamline the foreclosure and modification process in the wake of revelations of business practices by some mortgage originators and servicers during the housing crisis.