State and local government officials are trying to take the fear out of foreclosures.
Lt. Gov. Becky Skillman on Tuesday announced an effort that will coordinate settlement conferences for homeowners on the verge of losing their properties.
The program is the result of a partnership between the Indiana Supreme Court and the Indiana Foreclosure Prevention Network, which has assisted more than 60,000 homeowners since its inception in 2007.
The settlement initiative began as a pilot this winter in Allen County, but leaders will implement it statewide in coming months.
While the economy continues to sputter it is easy to lose heart and just throw your hands up, said Skillman, speaking at the Allen County Courthouse.
Discouraged homeowners are distraught and often unaware of their options, she said.
A settlement conference brings borrowers and lenders to the table to work out arrangements.
In late 2009, Skillman said that less than 2 percent of the eligible homeowners participated in the settlement meetings.
Help is available, she added.
State officials have created a system involving local logistical coordinators to direct courts, homeowners, housing counselors, pro bono attorneys and lenders.
Allen Superior Court Judge Nancy Boyer has overseen the settlement conference program since it began in February. More than 17 meetings have taken place in Allen County.
So far, five foreclosure proceedings have resulted in agreements or dismissals, said Boyer, who addressed the issue along with Indiana Appellate Court Judge Melissa May during Tuesday afternoons announcement.
Officials will launch the effort in St. Joseph and Marion counties this week.
I think this is a great opportunity for people, said Vickie Evans, a foreclosure-prevention program manager with Pathfinder Community Connections.
What will help are people receiving a single letter telling them that they can have a settlement conference before they get that thick foreclosure packet that can be overwhelming.
Indiana has 14,193 foreclosure filings so far this year, according to RealtyTrac Inc., a California-based foreclosure listing service.
Allen County had 289 foreclosure filings in March.