After the housing bubble collapse, homeowners and policymakers alike were interested in developing alternative solutions for the massive foreclosure problems plaguing the country.  The District of Columbia was no different than the rest of the country, with a 10-year foreclosure rate high maxed out in 2010.  This ultimately led to the Saving D.C. Homes From Foreclosure Act, developed in the same year.  It's likely that other states and areas may follow suit, helping thousands of homeowners. 

So far, the program has had a high level of success.  The mediation process involves lenders and homeowners meeting together to discuss options that avoid foreclosure.  Not only does this helps banks and homeowners avoid the agonizing process of foreclosing on a home, but the mediation process has an 80% success rate.  The added benefit of not contributing to filing and court logjams is just the icing on the cake. 

The program has now been in place for more than two years and foreclosure rates are already dropping.  In 2011, foreclosures in the District dropped to 566 (2010's numbers were 1,349), and 2012 brought an extremely low number of 89.  Of course, the slowly regenerating economy certainly gave many homeowners the extra assistance to meet their mortgage payments, ultimately the mediation program provides an important safety net. 

Those homeowners who have received a notice of default have only 30 days after receiving the default notice to elect the mediation option.  In the past, families felt trapped by seemingly impossible requests from the banks managing their mortgages but mediation now provides the opportunity to talk through options and reach a conclusion without having to enter the court system.  Hostilities are kept to a minimum and the majority of the time lenders and homeowners reach terms that allow the owners to keep the home.  The success of this program is expected to spread to other locations.