Philadelphia foreclosure prevention program becomes national model

Philadelphia’s home foreclosure prevention program will be highlighted at the U.S. Conference of Mayors this week. Philadelphia was the first city in the country to try court-mandated sessions between lenders and homeowners. Mayors from across the country will meet in Providence, Rhode Island.

Philadelphia’s home foreclosure prevention program will be highlighted at the U.S. Conference of Mayors this week. Philadelphia was the first city in the country to try court-mandated sessions between lenders and homeowners. Mayors from across the country will meet in Providence, Rhode Island.

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[audio: 090611sphomes.mp3]

The mayors say they’ll ask state governments to implement laws modeled on Philadelphia’s program. Philadelphia insists lenders meet with troubled borrowers before the foreclosure process goes through, in hopes of reaching a happier resolution.

During a conference call with several mayors of large cities, Nutter called on state and federal governments to pitch in to help local municipalities.

Nutter: We need state governments to step up and whether it’s to change laws, put dollars behind these programs, and support what cities are doing. And the federal government gave us dollars to deal with foreclosures, that’s after the fact, what we really need is on the front end.

Nutter says he has been able to secure enough private funding for the program to keep it afloat this year, despite the budget crisis.

New York Mayor Michael Bloomberg praised Philadelphia’s program, but said he would rather fund the mandates with private not public money.