To Avoid Foreclosures--Make the Parties Talk

Philadelphia courts have adopted what amounts to a mediation program of sorts to prevent or at least minimize residential foreclosures.

A program to curb foreclosures by the city and courts of Philadelphia has staved off the sale of nearly 80 percent of the properties referred to it in the first three months of operation.

The plan requires courts to review all scheduled residential foreclosures with borrowers and lenders before the properties can be sold, the New York Times reports. The parties try to reach agreements to modify the loan terms so borrowers can stay in their homes. The effort, called the Residential Mortgage Foreclosure Diversion Pilot Program, is the first to be sponsored by a city.

So making the parties sit down to talk about a workout or other arrangments.

It also has the benefit of easing the courts' already crowded docket.