Milwaukee Foreclosure Mediation Program

As of September 2009, there have been 4818 foreclosure filings in Milwaukee County this year. The number of foreclosure actions filed in the past year is nearly quadruple the pre-2005 average. It is estimated that there will be more than 27,000 foreclosure filings in Wisconsin in 2009.

A court based foreclosure mediation process can successfully bring lender and borrower back from the brink, allow the parties to negotiate in a more equal bargaining process, preserve home equity for borrowers, cash flow for lenders, and prevent blight for communities. With seed money from the City of Milwaukee and funding contributed by Attorney General Van Hollen, Marquette University Law School instituted the Milwaukee Foreclosure Mediation Program. The Chief Mediator, a licensed attorney and experienced mediator, conducts daily mediation sessions and works with other volunteer mediators to serve the parties in foreclosure requesting mediation services.

Details about the program:

• Any foreclosure case currently pending, subject to the eligibility requirements and approval of both parties, can be mediated.
• A notice announcing the availability of the mediation process is attached to the foreclosure summons and complaint by the party initiating the foreclosure action.
• Pursuant to Milwaukee County Chief Judge Directive 9-14, foreclosure cases filed on or after July 22, 2009, must include the Notice of Mediation with the Summons and Complaint.
• Foreclosure mediation services are offered only to residential homeowners who reside in owner-occupied properties with 4 units or less.
• Mediation must be affirmatively requested by either the borrower or the lender, and borrower requests will be screened to ensure there is some possibility of a successful outcome in a mediation process.
• Both the borrower and the lender must agree to mediation.
• Mediations are typically scheduled 45 - 60 days after the request for mediation is received.
• Homeowners must meet with a HUD-certified housing counselor prior to the mediation session.
• In most cases the mediation session will serve as a venue to work out new loan terms, a short sale, or other solution that is mutually agreeable, and execute a final agreement between the parties.
• Other jurisdictions that have used mediation in foreclosure cases report a high success rate, and more and more jurisdictions are turning to mediation as a solution for this crisis.