1. Presenters: Eileen Pruett Jacqueline C. Hagerott February 12, 2010

2. History Process and Procedure Documents and Forms Training and Ongoing Professional Development Marketing Additional Resources www.supremecourtofohio.gov/foreclosure

3. General Overview Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens Lis pendens is Latin for "suit pending” Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes How does mediation differ in judicial versus non-judicial?

4. National Consumer Law Center Current state and local foreclosure mediation programs, links to current and pending legislation, court rules, and program documents http://www.consumerlaw.org/issues/foreclosure_mediation/ Mediate.com/adrnews

5. American Bar Association Subcommittee on Foreclosure Mediation Key Initiatives Identify key stakeholders Send introductory letter to key stakeholders Secure participation & organize initial meeting with key stakeholders Create national templates inclusive of key stakeholders’ interests Discuss Lobbying Prospects ABA Enterprise Fund Create a draft statement of interest identifying scope, time, and expense of a proposed project New Developments www:abanet.org/dispute

6. Members include judges, magistrates, mediators, attorneys, attorneys general, court administrators, state housing and development authorities, housing finance agencies, legal aid, public policy centers and other community organizations. Monthly meetings include brainstorming issues, sharing expertise and success stories, discussing federal and state legislation, court rules, articles, training, policies and procedures. Regular updates, news, and other resources on the topic are sent out regularly via email. Interested in being a member? Contact: Jacqueline C. Hagerott at: jacqueline.hagerott@sc.ohio.gov

7. A Community Response to the Foreclosure Crisis

8. Franklin County Municipal Court Dispute Resolution Department 375 S. High St., 16 th floor For Franklin County Court of Common Pleas With Funding from County Treasurer, Ed Leonard, County Prosecutor Ron O’Brien and County Commissioners, Paula Brooks, Marilyn Brown and John O’Grady

9.  Ohio is a judicial foreclosure state  This program includes both post and pre-filing mediation  Post filing mediation operates within judicial foreclosure processes  Pre-filing mediation operates consistent with non-judicial foreclosure processes

10.  To facilitate meaningful discussions among parties that lead to satisfactory and timely outcomes in foreclosure cases. This means that:  Ideally, borrowers should leave mediation with workable agreement that allows them to stay in their homes

11.  At minimum, borrowers leave mediation with an agreement that will allow them to give up their home with dignity and with a workable plan for transition

12.  Mediation is available to borrowers both before and after foreclosure action is filed in the Franklin County Common Pleas Court  Borrowers can use FirstLink (211) to connect to HUD Approved Counseling Agencies  Borrowers are required to complete HUD Approved Counseling before mediation.  Determine if they qualify for services from the Legal Aid Society of Columbus

13.  Mediations are scheduled for about 60 days from receipt of RFM. This gives borrowers ample time to complete and submit financial documents to lender/servicer and plaintiff’s attorney  FCFMP mediators are highly skilled and experienced  FCFMP offers mediation at no charge to the parties

14.  Borrowers are at risk for default on their mortgage  Generally, referred from HUD Approved Counseling Agency; Attorney could refer  Borrowers have just received summons  Borrowers must file an RFM and 60 day extension of time within 28 days

15.  Borrowers are in “later stages” of foreclosure process  Borrowers must file Motion to Request Mediation, with extension of time to answer and/or request to stay post- judgment proceedings

16.  Borrowers receive summons with information about FCFMP  Borrowers must contact FirstLink (211) to obtain appointment with HUD approved Counseling Agency; provide the appointment date and the Agency name on the RFM

17.  Borrowers must return completed Request for Mediation (RFM) form to FCFMP within 28 days of service  FCFMP files RFM and Borrowers receive a 60 day extension of time to file Answer  Court uses form entry to order mediation  FCFMP schedules mediation

18.  Borrowers must complete financial packet, provide supporting documentation and submit to Plaintiff and Plaintiff’s Counsel before mediation  If Borrowers have missed answer period, they must file Motion to Request Mediation Requirements to Participate in Post-Filing FCFMP

19.  It is a good idea to “walk through” a Motion to Request Mediation, especially if a Stay is requested  May or may not include a Motion for Stay of Sale or Confirmation of Sale Requirements to Participate in Post-Filing FCFMP

20.  Timely exchange of borrowers’ current and complete financial and budget information and (ideally) Lender’s first proposal  Knowledge of borrowers’ options and alternatives to reach complete agreement or arrange for “next” steps for the parties

21.  Borrowers’ attorneys to have a clear understanding of the options available in order to continue negotiations when a borrower’s offer is refused or if a loan modification offer is not a viable or favorable outcome for borrowers.

22. The difference between mediation programs that operate in judicial versus non-judicial foreclosure states is minimal. The key difference is how a case gets to mediation which depends on the cooperation of the lender/servicer if there is no statute requiring participation and the use of the court system is not an option, as it is in judicial foreclosure states. The ultimate goal is for lenders/servicers and homeowners to request mediation rather than it being required by law or by court order. Once a case is in mediation, documents, processes, and forms used by mediators are being shared by both judicial an non-judicial foreclosure mediation state programs.

23. Columbus, Ohio 43215 Phone (614) 645-5009 Fax (614) 645-8465 Email: foreclosuremediation@fcmcclerk.com Melanie McCort, Project Coordinator Eileen Pruett, Project Administrator

24. 24 If you have questions or comments, or want to share best practices about your program, please contact: Jacqueline C. Hagerott Manager, Dispute Resolution Section The Supreme Court of Ohio Email: jacqueline.hagerott@sc.ohio.gov Phone: 614.387.9420 Fax: 614.387.9359