mediating the american dream: marquette university law school and the milwaukee foreclosure...
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Mediating the American Dream:Marquette University Law School
and the Milwaukee Foreclosure
Mediation Program
Professor Andrea K. Schneiderand
Adjunct Professor Natalie C. FleuryMarquette University Law School
Needs in Milwaukee
Background• 6,323
• 5,800
• 1,500
foreclosure filings in Milwaukee in 2009, up 11.7% from previous year.
properties are currently subject to an open foreclosure filing.
Milwaukee homes are currently bank owned foreclosures (REOs).
Milwaukee Foreclosure Partnership Initiative (MFPI)
• Created in September 2008• Partnership public-private• Three workgroups—
prevention, intervention and stabilization• Charge…
“Create a formal partnership that will formulate and implement coordinated policies and programs that effectively address the impact of the recent surge in mortgage foreclosures on our community as well as identify long term strategies and best practices that will prevent similar issues in the future.”
Milwaukee Foreclosure Mediation Program (MFMP)
• Marquette Law School in October 2008• Local directive in July 2009
requiring notice of mediation option attached to summons & complaint
• Full-time professional mediator and program coordinator
MFMP Applications (February 2, 2010)
• 574 Applications– 45 ineligible– 273 Accepted to mediation– 87 Declined
• 53 declined, working directly• 34 declined, other reasons
– 169 Pending acceptance
MFMP Settlement Results (February 2, 2010)
• 273 Accepted to mediation– 48 Settled before mediation– 23 Homeowner withdrawal– 116 Pending 1st or 2nd session– 86 Mediations completed
MFMP Mediation Results (February 2, 2010)
• 86 Mediations completed– 59 Retentions– 7 Transitions– 12 No agreement– 8 Post-mediation ongoing
negotiation
Total of 107 homeowners staying in the home.
Process Design—Participation
• Key stakeholders around the table• Stakeholders help design and troubleshoot
– Legal recourse– Housing counsel– Financial information sharing
• Joint funding from City & State• Court buy-in with space & notice
Process Design—Suitability
• Is mediation the correct process?– Is this really mediation?
• Use of legal defenses• Lenders learning to empathize• Settlement opportunities
– Before, during & after
Process Design—Process Accountability
• Do we need representation?• Follow-up to check mediator neutrality• Follow-up to see demographics
Process Design—Results Accountability
• Demographics• Outcomes• Representation• Lender• Etc.
Process Design—Fluidity
• Timing of payments• When to calendar• Need for two sessions• Housing counselor• Higher volume than expected
Process Design—Sustainability
Actually not as much of an issue as program expiration is built in
but…you never know
Process Design—Permeability
• Embedded into court system?• Potential model for family mediation?• Embedded into state court system & rapidly
expanding
Mediating the American Dream:Marquette University Law School
and the Milwaukee Foreclosure
Mediation Program
Professor Andrea K. [email protected]
Adjunct Professor Natalie C. [email protected]