Presentation Transcript

1. Mediating the American Dream:Marquette University Law School and the Milwaukee Foreclosure Mediation Program

   Professor Andrea K. Schneider and Adjunct Professor Natalie C. Fleury Marquette University Law School
2. Needs in Milwaukee Background 6,323 5,800 1,500 foreclosure filings in Milwaukee in 2009, up 11.7% from previous year. properties are currently subject to an open foreclosure filing. Milwaukee homes are currently bank owned foreclosures (REOs).
3. Milwaukee Foreclosure Partnership Initiative (MFPI) Created in September 2008 Partnership public-private Three workgroups— prevention, intervention and stabilization Charge… “Create a formal partnership that will formulate and implement coordinated policies and programs that effectively address the impact of the recent surge in mortgage foreclosures on our community as well as identify long term strategies and best practices that will prevent similar issues in the future.”
4. Milwaukee Foreclosure Mediation Program (MFMP) Marquette Law School in October 2008 Local directive in July 2009 requiring notice of mediation option attached to summons & complaint Full-time professional mediator and program coordinator
5. MFMP Applications (February 2, 2010) 574 Applications 45 ineligible 273 Accepted to mediation 87 Declined 53 declined, working directly 34 declined, other reasons 169 Pending acceptance
6. MFMP Settlement Results (February 2, 2010) 273 Accepted to mediation 48 Settled before mediation 23 Homeowner withdrawal 116 Pending 1st or 2nd session 86 Mediations completed
7. MFMP Mediation Results (February 2, 2010) 86 Mediations completed 59 Retentions 7 Transitions 12 No agreement 8 Post-mediation ongoing negotiation Total of 107 homeowners staying in the home.
8. Process Design—Participation Key stakeholders around the table Stakeholders help design and troubleshoot Legal recourse Housing counsel Financial information sharing Joint funding from City & State Court buy-in with space & notice
9. Process Design—Suitability Is mediation the correct process? Is this really mediation? Use of legal defenses Lenders learning to empathize Settlement opportunities Before, during & after
10. Process Design— Process Accountability Do we need representation? Follow-up to check mediator neutrality Follow-up to see demographics
11. Process Design— Results Accountability Demographics Outcomes Representation Lender Etc.
12. Process Design—Fluidity Timing of payments When to calendar Need for two sessions Housing counselor Higher volume than expected
13. Process Design—Sustainability Actually not as much of an issue as program expiration is built in but…you never know
14. Process Design—Permeability Embedded into court system? Potential model for family mediation? Embedded into state court system & rapidly expanding

15. Mediating the American Dream:Marquette University Law School and the Milwaukee Foreclosure Mediation Program

    Professor Andrea K. Schneider andrea.schneider@marquette.edu Adjunct Professor Natalie C. Fleury natalie.fleury@marquette.edu