Pileup in the Court Room - More Lawyers Needed?

There's been a pileup in the court room with foreclosures cases glutting local courtrooms in Anne Arundel County, Maryland according to an article published in The Capital. Staff Writer Elisha Sauers states in a November 1, 2009 article, there aren't enough lawyers to go around for all the struggling homeowners - legal aid lawyers, that is, willing to help struggling homeowners at reduced rates or even pro bono.

The article suggests that manditory mediation between lender and borrower might be the solution. And states that Gov. Martin O'Malley introduced legislation last week in Maryland to require mortgage companies to participate in re-negotiations of loan terms before resorting to litigation. This seems like a good idea, move the process out of the courts and into the mediation conference room (do we have enough mediators?).

In reality, in Maryland, especially in Anne Arundel County, we've been relatively immune from foreclosures. With only about 2,300 year-to-date foreclosures - according to the story - we experienced nothing like areas in other parts of the country. Although the foreclosure numbers for our local area might be up and more lawyers might be needed, there's a strong economic base thanks to the Federal government and its contractors keeping area homeowners employed and in their homes!!!

It does seem to make sense for foreclosure mitigation to occur through mediation. But, the process, whether madated by law or voluntarily adopted by mortgage companies, will take time to become established. And by the time a process is worked out, the crisis may have already passed and too many homeowners who deserved to keep their homes may have already lost them.

The bottom line is "you pay you stay, you don't you go" as one of the settlement officers I've worked with liked to say about the foreclosure process detailed within the hundreds of pages buyers sign when they purchase a home. Whether its foreclosure or mediation before foreclosure for the homeowner who is in arrears, its really capitalism at work. Homeowners in trouble with their mortgages need to wake up to their financial situation and make changes and make them fast (for financial stratgies that work see Robert Pagliarini's e-book Plan Z). But in an era where we bail out big banks, forcing them to the mediation table instead of allowing litigation resulting in foreclosure could well be each and every trouble homeowners personal bail out plan.