Marquette law school to run foreclosure mediation program
The Marquette University Law School will provide mediation between lenders and residential borrowers facing foreclosure under a program funded with proceeds from a successful lawsuit against mortgage lender Countrywide Financial Corp.
Wisconsin Attorney General J.B. Van Hollen and Marquette Law School dean Joseph Kearney announced Wednesday $310,000 in funding for the school to implement the Milwaukee Foreclosure Mediation Program. Milwaukee Mayor Tom Barrett said the city of Milwaukee is also providing $100,000 for the program.
The Milwaukee Foreclosure Mediation program will be a voluntary, court-based independent mediation option for lenders and borrowers. The program, located at the Milwaukee County Courthouse, will seek to alleviate the current backlog of foreclosure cases in the county court system by offering the option of mediation to residential homeowners who reside in owner-occupied properties.
According to the Law School, in most cases, successful mediation will serve as a venue to work out new loan terms, a short sale or other solution that is mutually agreeable, and execute a final agreement between the parties.
The funding includes proceeds from a settlement with Countrywide, which was accused of misrepresenting the quality and benefits of its products. Under the settlement, announced in February, Countrywide agreed to pay $1.6 million for foreclosure relief benefits. The mortgage lending giant also agreed to waive various loan fees and modify loans for customers that could result in a total settlement value of $41.1 million, according to the Attorney General's office.
Beginning May 28, an informational phone line will be operational for those interested in learning more about the program. Interested parties may call 414-288-4040. Mediation activities will begin after July 1.
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