Ohio County’s Mediation Program Aims to Reduce Foreclosures
November 25th, 2008 by 
Joseph Smith
Earlier this year, Ohio State passed into legislation its foreclosure prevention programs. Part of the fund for this project will finance the Homeowner Helpline Program implemented through its counties and cities. $2.7 million from this program went to Franklin County and will be used in part for the Franklin Country Foreclosure Mediation project. This project aims to establish proper communication between lenders and delinquent homeowners as part of the ongoing process to stop foreclosures.
With this mediation program, homeowners can coordinate with their lenders on how to restructure their loans and make revised payment options that would be beneficial for both parties. This would be a good avenue for discussion before notices are filed and foreclosures commenced.
The largest city in Franklin County, Columbus City, approved $540,000 from its funds to finance the remediation project. The city council believes the program will save everyone precious time and money and will help the local court system be more effective. Since the program is conducted before foreclosures are finalized, homeowners are spared from an expensive litigation process and help them stay in their homes.
The mediation program includes a 60-day extension for homeowners who have received notices of foreclosures. Counselors assist homeowners get in touch with attorneys from the lending company and initiate discussions on mortgage restructuring that would be affordable for the family and prevent delinquent mortgage payments.
Both lenders and homemakers in trouble are supporting this program. A successful mediation would mean homeowners retain use of their homes without the danger of foreclosures. Lenders and banks on the other hand do not want these properties to remain in their books as it will cause additional burden in maintenance costs and insurance for them.
Franklin County homeowners who need help in their mortgage are encouraged to access the Homeowner Helpline. Other avenues are also available for homeowners to join the mediation program which includes counseling agencies and the state’s Save the Dream program.
