In the Foreclosure Diversion Program annual report to the legislature, Maine's Administrative Office of the Court provided general statistics on the program. Approximately 36% of foreclosures filed in 2013 entered the program, down from 43% in 2012. Of those cases mediated in 2013, 21% have been dismissed so far, while 13% have ended in foreclosure. Another 28% are still working their way through the program, while 38% have been returned to the docket. Data from 2010 shows that 60% of cases that entered mediation led to dismissal and 36% resulted in foreclosure in 2010. In 2011, these numbers remained stable, with 59% being dismissed, while 35% ended in foreclosure.
Data for type of disposition is only available for 32% of cases mediated between 2010 and 2013. Of those, 67% of homeowners received a loan modification. Another 5% received reinstatement, while 4% ended with a repayment or forbearance plan. In 8% of known dispositions, the homeowner and lender agreed to a short sale and 4% agreed to a deed in lieu of foreclosure.
The annual report also discusses a pilot project that was launched in 2012. The Administrative Office of the Courts launched the project to address delays caused by issues with the exchange of documents between the homeowner and the lender. In the original process, homeowners attend an informational session, then have 21 days to send all necessary documentation to the lender. The lender then had 21 days to review the documents before mediation. In the pilot, the first mediation is on the same day as the informational session. The 30-45 minute mediation makes a plan for document submission and loan review. In the three pilot courts, the average number of days the pilot group spent in the program was between 18% and 55% lower than for the control group.
Foreclosure Diversion Program: Report to the Joint Standing Committee on Insurance and Financial Affairs and the Joint Standing Committee on Judiciary
Pearlman, Laura S.. Feb. 13, 2014http://www.courts.state.me.us/maine_courts/fdp/pdfs/FDP%20Annual%20Report%202013.pdf