The few state foreclosure mediation programs in the U.S. that force the lender or homeowner to participate showed a far greater success rate than voluntary ones, according to a research note from the Federal Reserve Bank of Boston.
Connecticut launched an aggressive number of programs in 2008 including mediation and provides the most regularly updated data. Of the roughly 9,400 homeowners in the state who participated in the program through Jan. 31, nearly 79% avoided foreclosure and more than half received a modification.
Of those that couldn't manage to stay in the home, nearly half were granted a "graceful exit" either through short sale or deed-in-lieu.
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