Program helps homeowners avoid foreclosure

One year after the Circuit Court of Cook County started a mortgage foreclosure mediation program, nearly 27 percent of the homeowners involved have been able to save their homes, officials said Tuesday.

Mortgage foreclosures in Cook County have risen steadily over the last 11 years, to 50,621 last year. The circuit court reported 74,154 foreclosure cases pending as of March 31, 2011. Of those cases, 85 percent involved residential properties.

As part of the court’s program, volunteers from the Illinois Housing Development Authority, the Chicago Bar Foundation and the Chicago Community Trust provide free legal advice and housing counseling to homeowners in foreclosure in an effort reach a solution between borrowers and lenders. Using the courts to resolve foreclosures discourages homeowners from abandoning their property, county officials said.

Officials indicated 36,145 people have sought information about the program through its hotline and website. Officials found about half of the respondents ineligible because their homes were not yet in foreclosure and therefore had no case pending or because they rented and did not own the property.

Of the more than 1,820 cases referred to mediation, 1,199 are in the mediation process, meaning the bank cannot proceed with foreclosure, and 627 have been completed. In less than a year, 402 homeowners reached an agreement with lenders through mediation, with 216 homeowners — including 35 from Northwest suburban Cook County — obtaining permanent loan modifications thereby saving their homes. A total of 225 people failed to reach an agreement and have foreclosures pending, the report indicates.

Homeowners facing foreclosure can call (877) 895-2444 or (312) 836-5222 (TDD) or check cookcountyforeclosurehelp.org.