Illinois Foreclosure Mediation Program

Transcription

1 Illinois Foreclosure Mediation Program Statistical Report Status through December 31, 2014

2 Introduction Background In 2013, the Illinois Attorney General granted funds to Dispute Resolution Institute, Resolution Systems Institute and the University of Illinois School of Law to develop and administer 10 court-referred foreclosure mediation programs throughout the state. Six of those programs were in place as of December 31, Program Design Each program employs a different model. (See individual programs.) However, each has a two-part process: a pre-mediation service in which homeowners learn about their options and get help gathering required documents, and mediation itself.

3 Program Sites Dispute Resolution Institute Partners: Land of Lincoln Assistance Foundation, Urban League of Metropolitan St. Louis Resolution Systems Institute Partners: Joseph Corp (16 th ), Neighborhood Housing Services of the Fox Valley (16 th ), Northern Illinois University College of Law (16 th ), HomeStart (17 th ), Affordable Housing Corp of Lake County (19 th ), Consumer Credit Counseling Services of Northern Illinois (16 th & 19 th ) University of Illinois School of Law Partners: Land of Lincoln Assistance Foundation (6 th ), Navicore Solutions (6 th ), Prairie State Legal Services (21 st ), Community Service Council of Northern Will County (21 st ), Institute for Consumer Credit Education (21 st ) 17 th Circuit: Winnebago & Boone counties 19 th Circuit: Lake County 16 th Circuit: Kane County 21 st Circuit: Kankakee County 6 th Circuit: Champaign County 20 th Circuit: St. Clair County

4 All Programs Overview Summary Total for All Programs Total % of Foreclosures Foreclosures Filed 5630 Contacted/Referred to Program % Entered Program % 75% of cases contacted/ referred Cases Closed % 69% of cases entering program Homes Retained/TPP * 181 3% 27% of closed cases Homes Relinquished 53 1% 8% of closed cases No Agreement 94 2% 15% of closed cases Homeowner Did Not Complete Program 318 6% 49% of closed cases *Temporary Payment Plans (TPPs) are agreements in which homeowners make payments during a trial period. If they make all the payments on time, the payment plan should be converted into a permanent loan modification. 1

5 All Programs Case Status & Days in Program Percent of Foreclosures Contacted or Referred Percent of Referred That Entered Program Percent of Cases Entered That Have Closed 6th Circuit N/A 10 82% 6% Case Status 16th Circuit 26% 81% 74% 17th Circuit 23% 8 63% 19th Circuit 1 65% 87% 20th Circuit 23% 85% 67% 21st Circuit 10 65% 65% Days in Program All Cases Days in Program Completed Cases Days in Program Not Completed 6th Circuit 50 0 N/A 50 Days in Program Note: Completed cases are those in which the homeowner did not drop out. 16th Circuit 17th Circuit 19th Circuit th Circuit

6 All Programs Case Outcomes Home Retained/TPP Overall Closed Cases Home Relinquished No Agreement Program Not Completed Referred to Mediation 6th Circuit 10 16th Circuit 24% 6% 15% 54% 17th Circuit % 19th Circuit 29% 5% 16% 49% 20th Circuit 39% 5% 39% 16% 21st Circuit 27% 23% 5 Pre-Mediation Outcomes* 6th Circuit 10 16th Circuit 9% 1% 45% 43% 17th Circuit 1% 41% 59% 19th Circuit 8% 41% 48% 20th Circuit 25% 4% 25% 11% 3% Mediation Outcomes* 6th Circuit 16th Circuit 31% 12% 39% 12% 17th Circuit 41% 13% 4% 19th Circuit 44% 11% 32% 13% 20th Circuit 33% 67% 3 *Statistics for the 21 st Circuit do not indicate at which point an outcome is achieved. Therefore, only overall outcomes are included.

7 All Programs Participant Experience Pre-Mediation Understand Options Better Understand Better How to Work with Lender Satisfaction Overall 6th Circuit th Circuit % 19th Circuit 99% 10 92% 20th Circuit 93% 87% 93% 21st Circuit 91% 86% 91% Mediation Satisfied Overall Satisfied with Outcome Process was Fair 16th Circuit 94% 87% 98% Party 17th Circuit 19th Circuit 98% 83% 10 84% 10 97% 20th Circuit th Circuit 95% 81% 97% Attorney 17th Circuit 19th Circuit 94% 85% 85% 77% 97% 95% 20th Circuit 10 67% 10 4

8 All Programs Overview Case Status Program Start Date Eligible Foreclosures Filed Contacted Program/Referred (% of Foreclosures) Entered (% of Referred) 6th Circuit 10/1/ % 16th Circuit 1/2/2014 1, % % 17th Circuit 6/1/ % th Circuit 12/2/2013 2, % 20th Circuit 1/14/ * % % 21st Circuit 10/1/ % *This is based on the court s estimate that 5% of foreclosures are commercial. 5

9 All Programs Overview Case Outcomes # Closed Cases % Retention/ Temporary Payment Plan (TPP) % Relinquishment % No Agreement % Dropped Out of Program* 6 6th Circuit th Circuit % 6% 15% 55% 17th Circuit %** 19th Circuit % 5% 16% 5 20th Circuit % 5% 39%*** 16% 21st Circuit % 23% 5 *Dropped out of program means that the homeowner entered the program but then either voluntarily withdrew or did not comply with the requirements. **In the 17 th Circuit, homeowners who do not have a viable retention option cannot continue through the program. The high percent of homeowners who dropped out is due to this restriction. ***The high percentage is due to program process. Because homeowners meet with the lender s representative and the plaintiff attorney at the pre-mediation stage, they are able to negotiate, and the homeowners can decide based on those negotiations whether to pursue foreclosure avoidance options or to return to the foreclosure process. In other programs, homeowners may be making those decisions, but the reason they decide to voluntarily withdraw from the mediation program is not known.

10 All Programs Overview Timelines Days Allowed at Each Stage Actual Days Spent Average* Deadline to Enroll Maximum Days in Pre- Mediation Maximum Days in Mediation From Filing to Program Exit From Program Entry to Program Exit In Pre- Mediation In Mediation 6th Circuit N/A No maximum No maximum Not available N/A 16th Circuit No maximum th Circuit No maximum 72*** th Circuit th Circuit ** *** st Circuit N/A 60 Must be timely Not available Not available Not available Not available *Completed cases. Does not include cases in which the homeowner dropped out of the program. Time in pre-mediation plus in mediation do not equal total time in program because some cases close after pre-mediation. **The maximum is extended to 195 days if the homeowner is not eligible for a loan modification and the lender agrees to consider other options, such as deed in lieu or consent judgment. ***For cases filed before the program launch date, the date of the court order was used instead of the filed date. 7

11 Individual Program Profiles Illinois Foreclosure Mediation Program Statistical Report

12 6 th Judicial Circuit (Champaign County) Overview 8 Program Start Date October 1,2014 Entry Process (mandatory appearance to pre-mediation session scheduled within days of summons) Pre-Mediation Process (up to 3 pre-mediation sessions status conference days after submission of packet) Mediation Process (mediation within 45 days of status conference completion) Closure Lender s counsel schedules premediation session with program and then files the foreclosure. To participate, homeowners appear for the session. The mediation coordinator conducts the pre-mediation sessions. If the homeowner doesn t have an attorney, a housing counselor or legal aid representative must help him or her to prepare the packet. The homeowner has 3 sessions to submit a complete packet. Once submitted, a status conference is scheduled at which a mediator facilitates document exchange. There is no limit on the number of status conferences. Once all documents have been exchanged, mediation is scheduled to discuss home retention or relinquishment options. A case is closed when the homeowner doesn t comply with program rules or voluntarily withdraws, the case is resolved, or there is no agreement. The case remains open during the temporary payment plan trial period. Status of Cases Through Dec. 31, 2014 Foreclosures Filed Not Available Referred 57 Entered Program 47 Closed 3 Pending 44 Outcomes of Closed Cases Temporary Payment Plan* 0 Agreement: Retention 0 Agreement: Relinquishment 0 No Agreement 0 Closed: Program Not Completed 3 *These cases are technically open and are being monitored until the end of the TPP trial period.

13 6 th Judicial Circuit Details Pre-Mediation Outcomes Referred to Mediation 1 In Temporary Payment Plan Trial 0 Agreement: Retention 0 Agreement: Relinquishment 0 No Agreement 0 Homeowner Experience (n = 5) Understand options better than before Understand how to work with lender better than before 8 8 Satisfied overall 10 Closed: Program Not Completed 3 Pending* 43 *Includes cases that have moved from pre-mediation to status conference stage. From filing to close all cases Total in program all cases Average Days by Stage In program completed In program not completed In pre-mediation In mediation Not Available 50 N/A N/A 9

14 16 th Judicial Circuit (Kane County) Overview Program Start Date January 2, 2014 Entry Process (initial conference within 45 days of summons) All eligible homeowners are referred to the program. The program coordinator calls the homeowner for the initial conference. If homeowner wants to participate and has filed an appearance, they enter the program. Status of Cases Through Dec. 31, 2014 Foreclosures Filed 1,598 Initial Conference 416 Entered Program 337 Pre-Mediation Process (30-60 days to complete packet, days for lender review) Mediation Process (mediation within 60 days of referral to mediation) Closure Housing counseling is not mandatory. Housing counselors help homeowners to complete their loan packet and discuss possible options with them. Generally, this takes one or two sessions. Once done, lender is given 45 days to review the packet. When the packet has been completed and reviewed, the lender s attorney informs the program coordinator that the case is ready for mediation. Mediation is completed in one or two sessions. A case is closed when the homeowner doesn t comply with program rules or voluntarily withdraws, the case is resolved, a temporary payment plan is entered, or there is no agreement. Closed 254 Pending 83 Outcomes of Closed Cases*^ Temporary Payment Plan 30 Agreement: Retention 31 Agreement: Relinquishment 16 No Agreement 37 Closed: Program Not Completed 138 *When temporary payment plans are made permanent, the outcome is changed to Agreement: Retention. ^Four cases had outcomes marked as other. 10

15 16 th Judicial Circuit Details Pre-Mediation Outcomes* Referred to Mediation 121 Referred to Legal Services - Left Program In Temporary Payment Plan Trial 19 1 Participant Experience Note: No pre-mediation participant experience data (such as satisfaction) has been collected for this program. Agreement: Retention 7 Agreement: Relinquishment 4 No Agreement 1 Closed: Program Not Completed 126 Pending 58 *There was one outcome marked as other. 11

16 16 th Judicial Circuit Details Mediation Outcomes* Temporary Payment Plan Trial 27 Agreement: Retention 2 Agreement: Relinquishment 12 No Agreement 36 Closed: Program Not Completed 12 Participant Experience Party (n = 188) Attorney (n = 145) Satisfied overall 95% 94% Satisfied with outcome 81% 87% Process was fair 97% 98% Pending 25 *Three outcomes were marked as other. Average Days by Stage From filing to close all cases Total in program all cases In program completed In program not completed In pre-mediation In mediation

17 17 th Judicial Circuit (Winnebago & Boone Counties) Overview 13 Program Start Date June 1, 2014 (Winnebago), November 1, 2014 (Boone) Entry Process (within 21 days of summons) Pre-Mediation Process (within 30 days of completing application) Mediation Process (mediation within 45 days of referral to mediation) Closure All eligible homeowners receive notification of the mediation program with their summons. They are instructed to go to the program website to complete an application. When the homeowners complete the application, they meet with a housing counselor. The counselor determines whether the homeowner can realistically obtain a loan modification or other retention option. If not, the case is returned to court and referred to housing counseling. If so, it is scheduled for mediation. When the packet has been completed and reviewed, the housing counselor completes a pre-mediation report indicating the case is ready for mediation. A case is closed if the housing counselor determines the homeowner doesn t have viable options, when the homeowner doesn t comply with program rules, when agreement is reached, or when no agreement is reached in mediation. Status of Cases Through Dec. 31, 2014 Foreclosures Filed 641 Started Application 145 Entered Program 116 Closed 73 Pending 43 Outcomes of Closed Cases Temporary Payment Plan 19 Agreement: Retention 3 Agreement: Relinquishment 0 No Agreement 7 Closed: Program Not Completed 44

18 17 th Judicial Circuit Details Pre-Mediation Outcomes Referred to Mediation 54 Closed: Program Not Completed 25* Pending 14 *These were considered not viable for mediation because the homeowner did not qualify for available options. They were referred to housing counseling. Homeowner Experience (n = 63) Understand options better than before Understand how to work with lender better than before Satisfied overall 95% 14

19 17 th Judicial Circuit Details Mediation Outcomes Temporary Payment Plan Trial 19 Agreement: Retention 3 Agreement: Relinquishment 0 No Agreement 7 Closed: Program Not Completed 2 Participant Experience Party (n = 68) Attorney (n = 43) Satisfied overall 94% 98% Satisfied with outcome 85% 10 Process was fair 97% 10 Pending 23 From filing to close all cases Total in program all cases Average Days by Stage In program completed In program not completed In pre-mediation In mediation

20 19 th Judicial Circuit (Lake County) Overview Program Start Date December 2, 2013 Entry Process (attend information session within 35 days of summons, call for housing counseling within 7 days of info session) Pre-Mediation Process (30 days to complete packet) Homeowners receive notice of the program with their summons. They must attend an information session in order to participate, and they then must follow up with housing counseling. Housing counselors help homeowners to complete their loan packet and discuss possible options with them. Generally, this takes one or two sessions. Status of Cases Through Dec. 31, 2014 Foreclosures Filed 2,339 Attended Info Session 238 Entered Program 155 Closed 135 Pending 20 Outcomes of Closed Cases*^ Mediation Process (mediation within 35 days of referral to mediation) Closure When packet has been completed, the housing counseling agency informs the program coordinator that the case is ready for mediation. Mediation generally takes two sessions. A case is closed when the homeowner or lender doesn t comply with program rules or voluntarily withdraws, the case is resolved, there is no agreement, or a temporary payment plan is agreed to. Temporary Payment Plan 21 Agreement: Retention 18 Agreement: Relinquishment 7 No Agreement 21 Program Not Completed 66 *When temporary payment plans are made permanent, the outcome is changed to Agreement: Retention. ^Two cases had outcomes marked as other. 16

21 19 th Judicial Circuit Details Pre-Mediation Outcomes* Referred to Mediation 69 Temporary Payment Plan 11 Agreement: Retention 1 Agreement: Relinquishment 1 Homeowner Experience (n = 74) Understand options better than before Understand how to work with lender better than before 99% 10 Satisfied overall 92% No Agreement 1 Closed: Program Not Completed 58 Pending 13 *One case had an outcome marked as other. 17

22 19 th Judicial Circuit Details Mediation Outcomes* Temporary Payment Plan 20 Agreement: Retention 7 Agreement: Relinquishment 6 No Agreement 20 Closed: Program Not Completed 8 Participant Experience Party (n = 163) Attorney (n = 79) Satisfied overall 85% 83% Satisfied with outcome 77% 84% Process was fair 95% 97% Pending 7 *There was one other outcome. From filing to close Total in program all cases Average Days by Stage In program completed In program not completed In pre-mediation In mediation

23 20 th Judicial Circuit (St. Clair County) Overview Program Start Date January 13, 2014 Entry Process (submit request and financial packet within 30 days of service or order by the court) Pre-Mediation Process (30 days from request to first pre-mediation session, 45 days from first to second session) Homeowners receive a mediation request form and financial questionnaire with their summons. They must submit these to the St. Clair County Circuit Clerk s Office in order to participate in the program. Program staff conduct a phone orientation and then schedules the first pre-mediation session with both the homeowner and the lender. These sessions, conducted by the program coordinator, focus on documents and negotiating possible options. By rule, the case must return to court after 3 sessions if agreement is not reached and the case is not ready for mediation. Status of Cases Through Dec. 31, 2014 Foreclosures 730 Referred 129 Entered Program 110 Closed 74 Pending 36 Outcomes of Closed Cases Temporary Payment Plan* 9 19 Mediation Process (no deadline for first session) Closure If no agreement is reached in premediation and the homeowner is interested in exploring options, the case is referred to mediation. Three mediation sessions are allowed. A case is closed when the homeowner doesn t comply with program rules or voluntarily withdraws, the case is resolved, or there is no agreement. The case remains open during the temporary payment plan trial period.. Agreement: Retention 20 Agreement: Relinquishment 4 No Agreement 29 Program Not Completed 12 *These cases are technically open and are being monitored until the end of the TPP trial period.

24 20 th Judicial Circuit Details Pre-Mediation Outcomes Referred to Mediation 3 In Temporary Payment Plan Trial 9 Agreement: Retention 19 Agreement: Relinquishment 4 Homeowner Experience (n = 30) Understand options better than before Understand how to work with lender better than before 93% 87% Satisfied overall 93% No Agreement 27 Closed: Program Not Completed 12 Pending 36 20

25 20 th Judicial Circuit Details Mediation Outcomes Agreement: Retention 1 No Agreement 2 Pending 0 Participant Experience Party (n = 3) Attorney (n = 2) Satisfied overall Satisfied with outcome 67% 10 Process was fair From filing to close* Total in program all cases Average Days by Stage In program completed In program not completed In pre-mediation In mediation *For cases filed prior to the launch of the program, the date of the court order to mediation is used instead of the filed date. 21

26 21st Judicial Circuit (Kankakee County) Overview Program Start Date October 1, 2013 Status of Cases Through Dec. 31, 2014 Entry Process (need only to appear for pre-mediation conference) Pre-Mediation Process (conference is 42 to 60 days from summons) Mediation Process (mediation must be timely) Closure Homeowners are given a date to attend the pre-mediation screening conference. They must appear in order to enter the program. The lender s counsel and the homeowner attend the pre-mediation screening conference with a neutral to discuss what documents need to be exchanged. The neutral then either schedules a status conference to determine if all documentation and review are complete or schedules a formal mediation. When ready, the case is mediated by the same neutral who conducted the premediation conference. A case is closed when the homeowner doesn t comply with program rules or voluntarily withdraws, the case is resolved, or there is no agreement. The case remains open until the end of a temporary payment plan trial. Foreclosure s Filed 265 Referred 265 Entered Program 173 Closed 112 Pending* 61 *This includes cases that are in a temporary payment plan. Outcomes of Closed Cases* Agreement: Retention 30 Agreement: Relinquishment 26 No Agreement 0 Program Not Completed 56 *The case is not closed until a permanent payment plan is in place. Therefore, there is no data on temporary payment plans. 22

27 21 st Judicial Circuit Details Pre-Mediation/Mediation* Outcomes Agreement: Retention 30 Agreement: Relinquishment 26 No Agreement 0 Closed: Program Not Completed 56 Homeowner Experience (n = 22)** Understand options better than before Understand how to work with lender better than before 91% 86% Satisfied overall 91% Pending 61 *The same neutral works with the case through both the pre-mediation and mediation stages. There is no data on the point at which particular outcomes are achieved. **Homeowners complete the pre-mediation session survey. Days by Stage There is no data regarding the number of days cases spend in the program. 23