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Nov 8, 2009 12:28 am US/Eastern
Focus On Fighting Foreclosure Goes To The Banks
Click Here to read Carey Codd's blog on Foreclosure Mediation
OAKLAND PARK (CBS4) ―
Andrew Wilkinson's Oakland Park home is an oasis. With lush landscaping and private hedges, Wilkinson transformed a house that needed some work into a home.
But it might not be his home for much longer.
In February, Wilkinson lost his job as a tax accountant when the major corporation he worked for downsized. Wilkinson did not want
CBS4 to name the company.
"It gives you sort of a feeling of helplessness, sometimes you feel worthless," Wilkinson told
CBS4's Carey Codd. "I have been depressed. Up and down. It's been a hard, hard time."
Wilkinson has not paid his mortgage since he was laid-off. He has tried to negotiate with his lender to work out a loan modification but he said he's been unsuccessful.
"I think the lenders need to be held more accountable," Wilkinson said.
He is not alone in that belief.
According to the Florida Attorney General's Office, Broward County ranks 6th in country in foreclosure rate. Florida AG Bill McCollum said banks are part of the problem.
"I believe that it was largely the irresponsible conduct of the lenders that contributed to this financial mess and they need to be leading the charge to help get us on the road to economic recovery in this state and throughout the country," McCollum said in a statement.
There is a push across the state and in Broward County to make mediation between borrowers and lenders a significant part of the foreclosure process.
A Florida Supreme Court Task Force on Residential Mortgage Foreclosure Cases recommended managed mediation as a way to bring all parties to the table early in the foreclosure process. The hope is that mediation will result in positive outcomes for homeowners and also lessen the enormous strain foreclosures are placing on the court system.
"Mediation tends to be faster than the judicial system and tends to have both parties have more favorable results," said Deputy Attorney General Cindy Guerra, at a community forum on housing Saturday in Sunrise. The forum was hosted by the Florida Attorney General's Office in hopes of providing assistance to homeowners facing foreclosure.
The mediation plan in Broward County is not finalized and, if approved, would call for mediators to work with homeowners and lenders to resolve issues. Possible funding plans for the program are still being discussed.
Attorney George Castrataro handles dozens of foreclosure cases in Broward County. He said foreclosure cases are taking months, if not more than a year, to work through the court system. Similarly, he said his clients often have a difficult time obtaining loan modifications because the process is lengthy and filled with enormous amounts of paperwork.
Castrataro believes a mediation program could cut down the time these cases take.
"The mediation insures a stopgap measure," Castrataro said. "It insures that the bank will have to listen."
Castrataro said he's seen mediation assist clients in obtaining loan modifications, reductions in their principal owed and, in cases where foreclosure cannot be avoided, a significant reduction in the amount of debt they owe long term. He believes mediation would be a win-win for homeowners and the court system.
"Mediation will force banks to be accountable. It will also free up a lot of time in the courtroom," he said.
Andrew Wilkinson did recently receive some good news. He will start a part-time job on Monday but he fears it is too late to save the home he loves.
"Maybe the lender could do something, maybe if they're pushed a little bit," Wilkinson said. "Right now, I'm a number, I'm a number in many loans, many homes that are going under."
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