Benefits of Mortgage Mediation

In at least one instance, mortgage mediation programs have helped half of participants or more remain in their homes.

According to the Center for American Progress, these kinds of programs help homeowners by making them meet with banks–as well as holding the banks accountable for meeting with them. Through this interaction, participants become more human rather than just a case within the pile, and both parties can look over all available options and discuss which ones will work best for both parties.

Solutions that are most cost effective for both homeowners and the banks, of course, are ideal.

In New Jersey, which started a mediation program in January, the service is even free.

Once success rates are available for reporting, we’ll know more about how much mortgage mediation can help people. In Connecticut, where mediation has been accessible for a year, the odds are looking good; about59% of participants have been able to stay in their homes after obtaining a mortgage modification, being granted delayed payments, or receiving other methods of support.

Andrew Jakabovics, associate director for housing and economics of the Center, says, “To the extent that we can mitigate foreclosures we should really be doing everything in our power to do that. Just getting borrowers and servicers in the same room has proven to have tremendous value.”

It sounds so… civilized, and… human, right? Not like so many cases of cold dismissal or outright fraud we hear about every day. Success of programs like these could offer a bit of proof toward the concept we all know, deep down, is the real solution: people over profits, human compassion over the almighty dollar, quality over quantity.

In short, something akin to It’s a Wonderful Life. And why not? It worked for George Bailey, who was practically Mr. Middle America himself, right?