Philadelphia’s mortgage diversion program has come full-circle after some potentially dangerous tinkering.
The First Judicial District attempted to limit how long homeowners and the banks in the mortgage relief program can negotiate. Judge Allan Tereshko says time limits were brought up to try to conform to national standards.
“What we were hoping to do was identify the effective length of that diversion program and process of complying with the American Bar Associations standards once the case emerged from that process,” said Tereshko.
But with banks, sometimes putting a clock on negotiations doesn’t work. David Ward of advocacy group Keystone Progress is pleased.
“The decision itself will keep the program intact it’s a win for consumers,” said Ward. “Hopefully as they try to make the courts more efficient they try to keep in mind the benefits for the average consumer in Philadelphia when trying to keep the courts efficient and fair for everyone.”
The diversion program has been a national model to help keep struggling homeowners from losing their properties.