Background:
The Mortgage Foreclosure Trial Court Assistance Project (MFTCAP) was created to assist trial courts in scheduling and conducting mortgage foreclosure settlement conferences. This program utilizes court-appointed facilitators to reach out to foreclosed borrowers, ensure they are aware of their right to a settlement conference, and to bring both parties to the table to try to find a mutually-agreeable settlement, or “workout”. The MFTCAP is funded through a portion of the $50.00 filing fee levied on all foreclosure cases after July 1, 2009.
The MFTCAP launched on a pilot basis in February 2010 in Allen County, in April 2010 in St. Joseph, Marion, and Monroe counties, in July 2010 in Lake County, and in August 2010 in Madison County. This program will be implemented throughout the state in early 2011.
Current pilot county data:
In Allen, Marion, St. Joseph and Monroe Counties (from 3/1/10 – 8/1/10):
- 386 telephone conferences were scheduled;
- 219 telephone conferences were held (the remaining 167 borrowers failed to appear);
- 180 settlement conferences were requested;
- 143 settlement conferences were held;
- 84 conferences resulted in workouts;
- 31 conferences resulted in no workout (lender to proceed with foreclosure); and
- 28 conferences are being followed up by the facilitator.
It has been estimated that each averted foreclosure saves local communities and stakeholders at least $40,000. Using this figure, from February to August 2010, the MFTCAP has saved Indiana residents at least $3,360,000.