Court mediation is gaining popularity as an option for parties seeking amicable settlement of a foreclosure dispute. According to mediate.com, the states that are either exploring or have adopted a mediation option include:

• Ohio, where Supreme Court Chief Justice Thomas J. Moyer introduced the Foreclosure Mediation Program Model — the first of its kind in the nation — in February 2008. The Ohio model includes 11 steps and is designed to give local courts flexibility to modify the model to fit their local needs and resources.
• New Jersey, which launched its mediation program upon passage of legislation back in January. Called the Mortgage Stabilization Program and Housing Assistance and Recovery Program, it is being administered by the New Jersey Housing and Mortgage Finance Agency.
• In Florida, a new home foreclosure mediation program took effect March 13 in Indian River, Martin, Okeechobee and St. Lucie counties. The program provides free mediation and counseling services to owner-occupants. Mediation has been made mandatory in Orange and Osceola counties in Florida based on a court order by the chief judge. The lender must negotiate ingood faith within 45 days and must pay for the cost of the mediation.
• Nevada is considering legislation that would require lenders to participate in mediation at the request of the borrower. Although Nevada employs a non-judicial foreclosure process, the proposed mediation proceedings would be overseen by either a judge or magistrate.
• The mayor of Milwaukee, Wis., is seeking cooperation from lenders and the local courts to create a mediation program that would allow borrowers to meet with their lenders in order to renegotiate their loan.
• In Providence, R.I., the mayor has proposed ordinances protecting homeowners and tenants in home foreclosure situations. One proposed ordinance would require lenders to meet with homeowners prior to foreclosure. Another ordinance would protect tenants from being evicted from their homes prior to the end of their current lease.
• Jefferson County, Ky., has instituted a pilot mediation program for owner-occupied residential properties. Four judges oversee the program, which began March 30, 2009. The program is modeled after a successful program in place in Philadelphia, Pa.

Sources: mediate.com, dsnews.com