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As Congress Dithers, ACORN Urges Action on Ideas That Work

With the Senate not exactly in a rush to pass a mortgage cramdown bill, the Association of Community Organizers for Reform Now (ACORN) is out with a report that

Jul 31, 2020
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With the Senate not exactly in a rushto pass a mortgage cramdown bill, the Association of Community Organizers for Reform Now (ACORN) is out with a reportthat cites a highly successful foreclosure prevention program that could be replicated elsewhere, with enough government support.
Since banks apparently call the shots in Capitol Hill, it’s refreshing to hear that someone is serious about trying to tackle the housing crisis.
ACORN points to a Philadelphia foreclosure mediation program that TWI has written aboutpreviously. It requires borrowers and servicers to sit down together before a foreclosure takes place, to see if both sides can work something out as an alternative to giving a home back to the bank. And in many cases, it works. That’s all the more reason why the Obama administration should put more federal resources into pre-foreclosure mediation efforts nationwide, based on the Philadelphia model, according to ACORN’s report.
Philadelphia has pioneered an innovative and remarkably effective foreclosure prevention program that requires lenders to sit down with borrowers and negotiate a mutually agreeable solution whenever possible. Approaching the one-year mark of the program’s initiation, more than three out of four homeowners who have entered the program remain in their homes today, where in other jurisdictions they would have lost their homes. The Philadelphia program is so effective because it is mandatory, uses very effective community outreach, is easy for homeowners to participate in, and utilizes the expertise of housing counselors. Other mediation programs we investigated are less effective for lacking some of these characteristics.
Our review of monthly foreclosure statistics in 30 counties across the country and all 50 states shows that the foreclosure crisis continues to pose a serious threat to homeowners, communities, and the economy. Implementation of a mandatory mediation program as effective as Philadelphia’s will save these communities untold tragedies and significant economic losses. **The federal government should invest in these successful local programs to complement the Administration’s efforts. **[Emphasis added.]
Dexter Cooke

Dexter Cooke

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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide. He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina. Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations. As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all. Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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