The risk of foreclosure is altogether too real for millions of homeowners in the United States. In a report created by the National Consumer Law Center, the risk of foreclosure can be greatly decreased, if not eliminated for many through mediation. Through this report, many states have a model that they can use to build or modify their own mediation programs.

How the NCLC's Report Can Guide Mediation Programs

In the NCLC's report, titled Rebuilding America: How States Can Save Millions of Homes Through Foreclosure Mediation, they review the performance of foreclosure mediation programs in 19 states. This data provided them with recommendations on successful practices that can be effectively adopted by all states. In particular, the programs in New York, Nevada and Connecticut serve as examples of successful programs.

The ultimate goal of mediation is to come to a mutually beneficial arrangement for both parties. This is also to be done in a way that is private, quickly resolved, and inexpensive for both parties and tax payers. Mediation programs are defined state by state, and this has taken on an element of trial and error in some places.

This report is a great service to all states in planning their own foreclosure mediation programs in that it provides examples of what works best and helps keep individual states from “reinventing the wheel” until they have a coherent and cohesive system in place. Not all existing mediation structures are as robust and authoritative as others. This report also provides provisions that may not exist at all in some states' programs.

The fate of Florida's foreclosure mediation program was a shining example of how these programs should not be done. They provided no real incentive to approach mediation in good faith, the standards were not enforceable, and in the end, the whole system was suspended. The NCLC's report could have prevented this issue.