The Household Mortgage Foreclosure Diversion Pilot System
In April 2008, as a result to an alarming rise in the amount of domestic home loan foreclosures filed and sheriff sales of houses planned, the Philadelphia Court of Common Pleas issued a broad Court Regulation which authorized the Court to implement a brand new instance administration system, the Residential Mortgage Foreclosure Diversion Pilot Program.
The program had been envisioned being a very early intervention system to permit property owners possibilities to avoid foreclosure by means of varied federal, state and regional programs to facilitate loan work-out and/or reinstatement, when possible.
The process began with postponement associated with the situations in the April 2008 and May 2008 Mortgage Foreclosure Sheriff purchase list. Domestic property owners were become identified so conciliation conferences, presided over by the Court, could take place, bringing defendants and lenders/servicers’ representatives one on one. Participation by loan providers had not been mandatory, but. An activity force of housing counselors, general public interest attorneys and agencies, and volunteer solicitors surely got to work shaping this program to really make it work as envisioned, working out the snags and filling out the functional details.