INDIANAPOLIS —
A court program that uses a phone call and some human contact may be making a dent in Indiana’s foreclosure rate.
That’s the conclusion of some early reports on the Mortgage Foreclosure Trial Court Assistance Project, a program launched to give distressed borrowers one more chance to save their homes.
Now in 20 counties, the court-supervised program taps into an army of lawyers, judges and mediators trained in mortgage law and the legal rights of borrowers.
Among its supporters is Hendricks Superior Court Senior Judge Mary Lee Comer, who describes the program as “leveling the playing field” for financially strapped and emotionally stressed homeowners.
Its roots are in legislation passed by the Indiana General Assembly in 2009, after the state’s mortgage foreclosure rate soared to one of the highest in the nation.
The 2009 law forced lenders to notify homeowners facing foreclosure of their legal rights, including a face-to-face settlement conference supervised by a local court judge. In essence, it compelled lenders to give borrowers one more chance to work out a deal.
The legislation was considered a landmark remedy to crisis: From 2003 to 2008, mortgage foreclosures in Indiana nearly doubled. Along with the rise, came a soar in complaints that lenders were steamrolling their way through the process.
But the law didn’t work: In the first few months after it was passed, only a small fraction — about 5 percent — of Indiana homeowners facing foreclosure responded to the lenders’ notices and requested a settlement conference.
The numbers have jumped significantly since the Indiana Supreme Court partnered with the Indiana Housing and Community Development Authority to launch the Mortgage Foreclosure Trial Court Assistance Project last year.
The project uses lawyers trained in foreclosure-prevention to act as court-appointed facilitators. They make telephone contact with homeowners facing foreclosure, inform them of their rights to a settlement conference, and offer to shepherd them through the process.
Since the project was implemented, requests for settlement conferences have gone up by more than 50 percent, and higher in counties that first piloted the project early last year. About 45 percent of the settlement conferences have resulted in some kind of workout — loan modifications that have allowed borrowers to either stay in their homes or make some kind of arrangement short of foreclosure.
Why the difference in response rates? What judges and others involved in the foreclosure-prevention effort in Indiana discovered was this: Homeowners facing foreclosure had either stopped opening or reading notices sent by their lenders, or didn’t understand what a settlement conference was, or feared they’d have to hire an attorney, a cost they couldn't afford.
“It’s really terrifying to be in a foreclosure situation,” said Boone County Superior Court Judge Matthew Kincaid. “Your world is crashing down on you.”
The contact from the courts made the difference, said Kincaid: “It’s like whispering in the borrower’s ear: You have rights.”
Administrators of the Mortgage Foreclosure Trial Court Assistance Project are quick to say that it will only help a fraction of homeowners facing foreclosure stay in their homes. Some borrowers, including those who’ve filed for bankruptcy, won’t qualify. Others may not meet settlement conference deadlines or other requirements.
Local & Bistate
Program’s goal to ease foreclosure problems
Personal contact helpful for some homeowners
- Local & Bistate
-
-
Rockville correctional facility program teaches life skills
It’s hard to know who benefits the most: the inmates or the dogs.
-
AAA mag recognizes city for arts works
The nonprofit organization that uses outdoor sculpture to draw attention to Terre Haute is getting some notice of its own.
-
State pushing for convenience stores to make safety a higher priority
In 2002, after New Mexico forced convenience store owners to put sweeping security measures into place for clerks working late-night hours, the number of robberies dropped by 92 percent. Assaults, murders and other crimes at convenience stores also dropped dramatically.
Now Indiana officials are hoping voluntary compliance with similar safety standards will bring about similar results.
-
Patriotism & Honor
From his vantage point, Sonner Faught could see almost every volunteer in the cemetery.
-
Graduation turns to mourning in Clinton
Jeana Lunsford’s graduation from South Vermillion High School Saturday should have been a time of celebration.
-
School choice proponents foresee growth of vouchers
Twenty-seven Vigo County students benefited from tax-supported vouchers during the first year of the Choice Scholarship Program, and that number is expected to grow for 2012-13, say Indiana school choice leaders who visited Terre Haute Thursday.
-
Tales of obstruction meet first takeover attempts
A decade after Indiana legislators gave the state the power to take over chronically failing schools, the first implementation of the law is meeting with resistance, skepticism and questions about its costs.
-
THE OFF SEASON: Raising a flag for my father, veteran or not
My daughter, Ellen, and I stood at my parents’ graves on Mother’s Day a few weeks back and talked about how it couldn’t possibly have been so long since we lost them. My dad, for instance, has been gone for 16 years, and that is nearly unimaginable
-
3 rescued from burning residence
Quick action on the part of some first-responders is credited with saving the lives of three people in a Vermillion County fire early Saturday morning, according to the Vermillion County Sheriff’s Department.
-
He never forgot a name: Friends remember victim of fire at Garfield Towers
When Freddie Poore met you, he never forgot you.
-
Hometown boy embraces ‘Promise I Made’: Clinton native Ken Kercheval takes role in Dreams Come True production
Thanks to some help from a hometown boy in Hollywood, “This Promise I Made” is still on track to be kept in Clinton.
-
STATE OF THE STATEHOUSE: Many say they don’t vote in primary because of tag that comes with it
A couple of columns ago, I posed a question about why most Indiana polling places on primary election day had so few customers.
-
Police looking for convenience store robber
Police are seeking a robbery suspect following a Saturday morning armed robbery at the Jiffy MiniMart at 25th Street and Eighth Avenue.
-
Graduation ‘responsibility’: Rose-Hulman stages 134th commencement exercises
Inventor Dean Kamen gave a first-hand demonstration Saturday of how to be an innovator.
-
THE OFF SEASON: To the seniors, one last lecture before you go …
It dawned on me one day last week, as I sat at my desk in my teacher clothes and shoes, a stack of ungraded essays calling to me from a rather tall and depressing pile, that I hadn’t missed a high school graduation in 33 years.
-
Water rescuers
Emergency personnel wheel a man who was removed from a vehicle that had been driven into the water at Crystal Lake on Boston Avenue near 14th Street at about 9 p.m. Friday.
-
For many, camping outdoors is the way to beat the heat, enjoy nature
Stringing up fishing poles in the shade of American flags, households full of Hoosiers are packing into parks across the state this weekend.
-
Towns along National Road readying for next week’s miles-long yard sale
Stretching 824 miles from Baltimore to St. Louis, the National Road — known as U.S. 40 through Indiana — will soon be the host site for perhaps the longest bargain market in the country.
-
Rose grads honoring late president Branam at commencement today
Rose-Hulman Institute of Technology’s Class of 2012 will honor the memory of Matt Branam during today’s commencement ceremony by wearing special pins with the phrase “Make It Happen; Make It Fun,” a favorite saying of the former Rose-Hulman president, who died unexpectedly on April 20.
-
Vigo County Jail Log: May 26, 2012
The following individuals were booked into the Vigo County Jail by area law enforcement on Thursday and Friday, based on jail records. Charges are recommended by arresting officers but are not final until the Vigo County prosecutor reviews the case and files official charges.
-
A fallen soldier returns home
An Army carry team moves a transfer case containing the remains of Spc. Arronn D. Fields early Thursday morning at Dover Air Force Base, Del.
-
Official touts trade with northern neighbor
A top Canadian diplomat told a Terre Haute audience Thursday his country was “disappointed” when President Obama at least temporarily rejected a proposed transcontinental oil pipeline from Alberta to Texas.
-
Caution urged for summer’s kickoff
Lane restrictions in construction zones on Interstate 70 and other highways around the state will be lifted to accommodate holiday travel for the Memorial Day Weekend.
-
Letters delivered
Several positions will be eliminated this summer at the Terre Haute mail processing facility as the U.S. Postal Service begins moving the operation to Indianapolis, a U.S. Postal Service spokesman has confirmed.
-
Companies seek Vigo tax abatements
Two Vigo County companies are seeking tax abatements for expansion projects, one of which is included as part of a county incentive package.
-
High-speed chase suspect caught in West Virginia
The suspect in a cross-country, high-speed chase originating in Terre Haute last week was reportedly in federal custody Thursday evening.
-
Second victim of deadly I-70 semi-trailer crash identified
The Vigo County Coroner’s Office has identified the passenger of a semi-tractor crash on May 16 in the eastbound lanes of Interstate 70 near the 12-mile marker.
- VIGO COUNTY JAIL LOG: May 22-24, 2012
-
Burn ban in effect for Vigo County through holiday weekend
Vigo County officials have issued a burn ban effective Thursday and remains in effect until 8 a.m. Tuesday.
-
Brazil remembers a Fallen Son
A small town seemed sadly quiet Wednesday, waiting to honor a local fallen warrior.
- More Local & Bistate Headlines
-
Obama Honors Fallen Troops at Arlington Cemetery
Raw Video: Cop Shoots Man Eating Another's Face
Raw Video: Deadly Explosion at Minn. Paper Mill
Man in Crane at Texas College Says He's Armed
Raw Video: 19 Dead in Qatar Shopping Mall Fire
Romney Promises World's Strongest Military
Beryl Makes Landfall on Florida Coast
Beryl Knocks Out Power in Florida
Obama Pays Tribute to Vietnam Veterans
Service Dogs Help Wash. Soldiers Battling PTSD
Raw Video: Memorial Day Aboard Intrepid
Japan Farmers Plant, Seek Radiation-free Rice
Raw Video: Heckler Bursts in on Blair Testimony
Air Canada Plane Makes Emergency Landing
UN Blames Syrian Forces for Shelling Houla
Raw Video: Gay Protest Blocked in Moscow
Vatican in Chaos After Butler Arrested for Leaks
Raw Video: Obama Lays Wreath on Memorial Day
Raw Video: National Mall Concert Shut Down
Biden Addresses West Point Graduating Class
J.Lo and Marc's Friendly Reunion
Justin Bieber Accused of Assaulting Photographer - Glen Walker reports
Cynthia Nixon Ties the Knot
Woman, 80, Falls Out of Skydive Harness Mid-Jump
Keira Reveals Engagement Ring
Dog runs alonside cyclists for 1,100 miles
Lady Gaga Cancels Indonesian Show After Threats
Long Story Short: Beyonce back on stage
Raw Video: Man Rescued From River in China
Celtics crush Sixers in Game 7
Alleged Lego Thief Faces Felony Charges
Has Snooki Named Her Baby?
Heat Wave Warms Holiday Weekend
Beyonce Entertains the First Family
Inspiration for the class of 2012
