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The number of mortgage foreclosure complaints in Delaware is expected to total over 6,000 in 2009 and estimated to exceed 7,000 next year. This is an alarming number, frightening for those homeowners and devastating to the economic stability of the state.
Fortunately in Delaware, responsibility has been accepted notably by Superior Court President Judge James Vaughn and his colleagues. On November 17, the New York Times published an article on the mortgage foreclosure crisis in Philadelphia and a program implemented a year ago that brings “the mortgage holder and the lender to the table” with the borrower and housing counselors. Other cities such as Pittsburgh, Chicago and Boston are considering similar efforts.
The good news for Delaware is that on August 31, Judge Vaughn signed an administrative directive of the Delaware Superior Court to implement a very similar program here. This program was a result of an intense nine-month series of meetings to ensure that the final product would include input, compromise and general consensus among a varied group of participants, including community activist groups, bankers, lenders, housing counseling agencies, the sheriff’s departments from all three counties, legislators and other stakeholders. Delaware ACORN was instrumental in bringing all parties together with a determination and a singular goal of helping those who most needed help.
The final product was a result of intense negotiations, compromises and some critical innovative thinking in order to satisfy the challenge Judge Vaughn laid before us. The program applies to mortgage foreclosure actions filed on or after September 15, 2009. The property subject to foreclosure must be the primary residence of the homeowner. In order to qualify, the borrower must show that the borrower can make monthly payments on the mortgage that do not exceed 38 percent of monthly income. In order to do this, the housing counselor can lower the percentage rate on the mortgage to as low as 2 percent and extend the term of the mortgage to a maximum of 40 years.
Unfortunately, the message that there is such a program available, at no cost to the taxpayer, has not resonated with those homeowners affected. In spite of hundreds of notices being sent out each month and posted on the doors of the residencies facing foreclosure the participation rate has been two in September, one in October and two in November.
We are currently left at a critical juncture that will require a public awareness campaign – through the media, word of mouth and a good neighbor policy that encourages you to talk to your neighbor who is in this position. Let them know that there is such a no-cost program available that might ultimately allow them to keep their home. Let them know that there is no risk and there is a glimmer of hope. The ultimate success can only be realized if they participate.
The number of mortgage foreclosure complaints in Delaware is expected to total over 6,000 in 2009 and estimated to exceed 7,000 next year. This is an alarming number, frightening for those homeowners and devastating to the economic stability of the state.
Fortunately in Delaware, responsibility has been accepted notably by Superior Court President Judge James Vaughn and his colleagues. On November 17, the New York Times published an article on the mortgage foreclosure crisis in Philadelphia and a program implemented a year ago that brings “the mortgage holder and the lender to the table” with the borrower and housing counselors. Other cities such as Pittsburgh, Chicago and Boston are considering similar efforts.
The good news for Delaware is that on August 31, Judge Vaughn signed an administrative directive of the Delaware Superior Court to implement a very similar program here. This program was a result of an intense nine-month series of meetings to ensure that the final product would include input, compromise and general consensus among a varied group of participants, including community activist groups, bankers, lenders, housing counseling agencies, the sheriff’s departments from all three counties, legislators and other stakeholders. Delaware ACORN was instrumental in bringing all parties together with a determination and a singular goal of helping those who most needed help.
The final product was a result of intense negotiations, compromises and some critical innovative thinking in order to satisfy the challenge Judge Vaughn laid before us. The program applies to mortgage foreclosure actions filed on or after September 15, 2009. The property subject to foreclosure must be the primary residence of the homeowner. In order to qualify, the borrower must show that the borrower can make monthly payments on the mortgage that do not exceed 38 percent of monthly income. In order to do this, the housing counselor can lower the percentage rate on the mortgage to as low as 2 percent and extend the term of the mortgage to a maximum of 40 years.
Unfortunately, the message that there is such a program available, at no cost to the taxpayer, has not resonated with those homeowners affected. In spite of hundreds of notices being sent out each month and posted on the doors of the residencies facing foreclosure the participation rate has been two in September, one in October and two in November.
We are currently left at a critical juncture that will require a public awareness campaign – through the media, word of mouth and a good neighbor policy that encourages you to talk to your neighbor who is in this position. Let them know that there is such a no-cost program available that might ultimately allow them to keep their home. Let them know that there is no risk and there is a glimmer of hope. The ultimate success can only be realized if they participate.
