With foreclosures expected to reach 2.4 million nationwide in 2009, the
consequences of mortgage defaults are far reaching. Some localities are taking steps to counteract these effects with foreclosure mitigation.
Three communities - Cuyahoga County, Ohio; Philadelphia, Pennsylvania; and the state of Connecticut - have each created unique programs with proven track records of preventing foreclosures.

The cornerstone of all three programs is outreach and borrower education with third-party assistance, without which homeowners might not be adequately prepared to navigate the services available. Two of the programs operate a hotline linking borrowers with counselors who are able to assist them. Outreach efforts of one locality also include public service announcements and going into neighborhoods to notify buyers of their upcoming conferences, as well as informing them of the assistance being offered. Another promotes its services with a public service announcement and through financial literacy programs. The state-run program ensures that borrowers receive information by mail regarding the
mediation program, once a foreclosure is filed.

Cuyahoga County's Foreclosure Prevention Program

Cuyahoga County experienced more than 40,000 foreclosures between March 2006 and February 2009. The county's foreclosure problem is compounded by Ohio's extremely lengthy foreclosure process -
at 192 days between foreclosure referral and sale, it is among the slowest in the nation. In response, Cuyahoga's Board of Commissioners initiated a 3-year pilot program designed to prevent foreclosures
when possible, and to hasten the foreclosure process when that step becomes unavoidable. The county successfully sought to amend state law, thereby reducing the complexity and processing time of
foreclosing on tax-delinquent abandoned and vacant properties. Automating the procedures for foreclosures within the courts and adding additional staff further expedited the process.

Through homeowner education, nonprofit partners in the Cuyahoga County Foreclosure Prevention Program held 5,078 foreclosure prevention counseling sessions between 2006 and 2009. During these
in-person meetings, homeowners were advised of the process and made aware of the services available.

These meetings mitigated nearly 2,200 foreclosures. The program was expanded beyond the pilot period and continues today. A mediation program went into effect in 2008 after the Ohio Supreme Court directed
counties to act. This expansion enables borrowers to opt-in to mediation once they have received a foreclosure notice from the court. Of the 2,416 cases in which homeowners chose to participate and were
referred to mediation, 1,542 premediation conferences were held with 443 proceeding to mediation, where 231 of the mediated cases were resolved successfully.

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