According to recent reports filed by special master Merrill Sherman to U.S. District Court Judge John J. McConnell Jr., the costs of the Rhode Island foreclosure mediation program that was legislated by the state have totaled $903,000, with $63,420.92 in expenses billed by Sherman’s office for the month of September.

According to Sherman’s October report, her offices have handled 1,123 cases under the Rhode Island foreclosure mediation program.  This total number includes 744 cases that were active and 379 cases that had been disposed.  Sherman’s report also estimates that the costs of the mediation program have been slightly over $800 per case, so far. 

Parties involved in the foreclosure mediation program must pay retainer fees imposed by the court of approximately $110 for each party involved.   “In her memorandum written to the court and dated October 22, Sherman stated, “we have kept the staff lean deliberately. My staff is two lawyers, both of whom are good, and contracted clerical and accounting services as needed. We never knew how long the program would last.”

The report also listed a figure of $4.5 million for “use and occupancy payments” collected from homeowners who wished to stay in their homes during the process of challenging a foreclosure.  “Of the more than $660,000 disbursed, approximately $415,000 has gone to plaintiffs [borrowers] (and been used to fund settlements) and approximately $245,000 to defendants [lenders],” says Sherman.

Also of consideration in the situation is a ruling made in June by the First U.S. Circuit Court of Appeals that the order to stay foreclosures and evictions in all pending foreclosure mediation processes served, in essence, to be an injunction.  Such an injunction would require parties “to show probable success” to maintain continuing injunctive relief.