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.So making the parties sit down to talk about a workout or other arrangments.
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.
It also has the benefit of easing the courts' already crowded docket.