This past week, the Delaware Senate passed legislation unanimously approving an extension for the state’s mortgage mediation program.  The program, like many others being considered by legislators across the nation, requires that lenders sit down in a face-to-face meeting with homeowners before foreclosing on the home loan.  Now, with the new extension, Delaware’s successful mortgage mediation program will continue for another four years past its previous expiration date set for January 2014.   

According to Bethany Hall-Long (Dem-Middletown), the mortgage mediation program has been an invaluable part of the state’s recovery from the recession.  "We need to really help our residents, who are facing foreclosure,” she stated.  “In Delaware, we still have many, who face foreclosure and having the banks at the table working with residents through that process because without mediation we would certainly have a much higher foreclosure rate.”

According to the Delaware State Housing Authority’s website, the mortgage mediation program that has been extended enables homeowners facing foreclosure the opportunity to receive counseling and participate in mediation with the lender prior to the court’s approval for the foreclosure to continue.  In the process, a neutral, third-party mediator works with both the lender and homeowner to ascertain ways in which the homeowner can keep the home and avoid foreclosure.  It is also a service that is provided free to the homeowner.  

Although the bill received a slight adjustment and will need to be sent back to the state’s House of Representatives for approval before being passed into law, Representative Helene Keeley believes wholeheartedly that it will be passed.  "Not only does it save someone's home,” she stated.  “It keeps a family together.  It keeps neighborhoods together.  Think about the fact that when you have just say a cul-de-sac of 10 homes and three of them are in foreclosure, it devalues the rest of the homes. This [legislation] is actually saving communities.”