Foreclosure Webinar for Housing Counselors

Mediation Update

November 4, 2010

• Martin O'Malley• GOVERNOR

• Anthony G. Brown• LT. GOVERNOR•

• Raymond A. Skinner• SECRETARY•

• Clarence J. Snuggs• DEPUTY SECRETARY

Make the most of the Webinar

•Press *7 to unmute your phone•To Ask Questions•Click on Raise Hand•Type in Chat box

Agenda

•Review Mediation Program•Update Partners on status of program•Role of Housing Counselors•Next steps•Questions

Purpose of the Call

• Update housing counselors and other partners on Maryland Foreclosure Mediation Program

• Identify issues for partners in Maryland Foreclosure Mediation Program.

Update on Maryland Mediation

• As of 10/28/2010, 69 Mediation Sessions have been held. • 178 are now scheduled• Activity is increasing• Mediation fund was at approx. 500K as of

October 20, 2010• Visit OAH’s Website for additional information &

mediation locations statewide http://www.oah.state.md.us/foreclosuremediation.asp

Counselor Q & A

What can counselors do to promote the mediation program?

Counselors should add information re: mediation to all their foreclosure prevention materials and group workshop content. DHCD expects to roll out a complete promotion of the foreclosure mediation program by 2011. The focus will continue to be on “Mortgage Late, Don’t Wait”

Counselor Q & A

Which cases are eligible for mediation

under the the new Foreclosure

Mediation Law ?

New foreclosure cases filed with the

Circuit Court on or after July 1, 2010 are

eligible.

Counselor Q & A

If my client requests mediation, is it automatic?

All requests for mediation are referred to OAH for scheduling. Lenders can object by showing that mediation is inappropriate for your clients’ case. If the lender objects, the Court will decide whether the mediation should go forward.

Counselor Q & A

Should Counselors accompany clients to mediation?

Counselors are not expected to attend nor represent their clients in mediation.

Can Counselors attend a mediation session ?Housing Counselors are encouraged to attend 1-2mediations with the permission of a client toobserve and help advise a client of their options.Housing Counselors are asked to sign aConfidentiality Agreement.

Legal Referrals for Mediaton

•Referral mediation cases for legal assistance• The emphasis is on mediation•Cases with orders to docket

DHCDHOPEHotline

CounselingNetwork

LegalReferrals

CC:

DHCD

Pro BonoLow

Bono

HOPE Program FY-11

Legal Aid

MVLS

&

Reporting

CJ

Others

PBRCAttorneyTrainings

&

PBRCWorkshops

(as needed)

CJ of CounselPanels

Roles of the Partners in the ProjectCivil Justice: Train legal partners and counseling

agencies in loss mitigation strategies and process. Lead low bono referral program statewide

Legal Aid: Provide free legal representation for homeowners in Baltimore City, Montgomery Co. and Prince George’s Co,. for mediation (2 dedicated staff attorneys)

MVLS: Case placement of pro bono legal services

PBRC: Key workshop participant. Recruit and train volunteer core of attorneys for foreclosure prevention

Role of Housing Counselor

If/when the client receives the Final Loss mitigation Affidavit and request for Foreclosure Mediation, you should

• Help the client to opt-in to mediation by sending in correct material in the preprinted envelope(s) and enclosing the $50 court fee or requesting a waiver of the fee.

• You can make a request for legal assistance by filling our the appropriate referral form and sending it to the appropriate referral agency

• You can still work to obtain a modification for the client.(coordinate with the legal service provider)

Referral Protocol for Mediation

For use by Housing Counselors when the

foreclosure action (“Order to Docket”) has

been filed. Referrals should be made within

24 hours if at all possible

1.) Determine Where To Refer

2.) Determine eligibility for free legal services

3.) Make a referral to service provider

Family SizeAnnual Income

Monthly Income

Weekly Income

1 $26,367 $2,197 $507

2 $34,480 $2,873 $663

3 $42,593 $3,549 $819

4 $50,707 $4,226 $975

5 $58,820 $4,902 $1,131

6 $66,933 $5,578 $1,287

7 $68,454 $5,704 $1,316

8 $69,975 $5,831 $1,346

9 $71,496 $5,958 $1,375

10 $73,017 $6,085 $1,404

Determining Income Eligibility

Eligibility for Free Legal Services

• If client is over income guidelines for free representation, refer to Civil Justice for a low bono referral if the combined family income is less $90,000. • If the combined family income is more than $90,000, refer

client to a Lawyer Referral Service for county. See Table B or go to the Maryland State Bar Association website: http://www.msba.org/public/referral.htm for a list of lawyer referral services. Clients whose family income is over $90,000 can be referred to Civil Justice as well; but these clients will NOT be eligible for “low bono” services and will have to negotiate for services with the assigned attorney.• If client meets guidelines for free representation), move to

the next step.

Eligibility for Free Legal Services

If eligible for free legal services and property is located in the following counties, refer to MVLS:

Allegany HarfordAnne Arundel HowardBaltimore County KentCalvert Queen Anne’sCaroline St. Mary’sCarroll SomersetCecil TalbotCharles WashingtonDorchester WicomicoFrederick WorcesterGarrett

Eligibility for Free Legal Services

If property is located in Prince Georges’ or Montgomery, refer to Maryland Legal Aid, if:

Client is U.S. Citizen or is lawful permanent resident of U.S.

If property is located in Baltimore City,Refer to Legal Aid, if:Client is U.S. Citizen or is lawful permanent

resident of U.S.

Eligibility for Free Legal Services

Refer to MVLS, if:

Client is NOT a U.S. Citizen or lawful permanent resident of U.S.

For MVLS Referrals:

E-mail Referral Form to both Javius Cain, MVLS Foreclosure Paralegal at Javius@mvlslaw.org and Michelle Swift, Paralegal Manager at michelle@mvlslaw.org. Javius Cain, MVLS Foreclosure Paralegal will contact client to follow-up on e-mailed referral

Low Bono Assistance

For Civil Justice Referrals: Email the referral form to: lowbonomediation@civiljusticenetwork.org. Civil Justice will call you within 24 business hours to confirm receipt of the referral.

You may also call the CJ Low Bono Mediation Hotline at (410) 706-5649 to confirm receipt.

Eligibility for Free Legal Assistance

• Legal Aid and MVLS have asset limits which may make a client ineligible, but generally do not disqualify most income eligible clients

• Screening for assets will be done once the case is referred to either Legal Aid or MVLS

Eligibility for Free Legal Assistance

•Homeowners must live in the property in foreclosure •Must not own any other property or a time

share. •Must not be currently represented by an

attorney or in bankruptcy.• Legal Aid will accept referrals of clients in

bankruptcy if they do not already have an attorney

Form for Referral to Legal Services

Form for Referral to Legal Services

Contacts Regarding Legal Referrals

Legal Aid: Vicki Taitano, Project Director 301-560-2160

vtaitano@mdlab.org MVLS: Michelle Swift

Paralegal Managermichelle@mvlslaw.org 443-451-4068

Civil Justice: Carrie McCullyProject Coordinator410-706-0174

cmccully@civiljusticenetwork.orgWith a cc: to DHCD HOPE MAILBOX

HopeInfo@mdhousing.org

Ineligible Clients – Next Steps

•Create Online Handbook and Tutorial for clients who do not qualify for pro bono and who cannot afford low bono…(similar to bankruptcy pro se representation product)

•Create a Training/Workshop for homeowners without legal representation in mediation

What should you know…

•Post Mediation

•Moratorium on Foreclosures

•“Robo” Signers

Upcoming Dates

•November 17 (full day) – HAMP Training •December 2 (10 AM) - Update Webinar

QUESTIONS??