Foreclosures Gnawing Into The Entrails Of Philadelphia Prompts Rescue Efforts

April 22nd, 2008

Philadelphia city is the seat of Philadelphia County and the largest in Pennsylvania state. It is aspiring to be a global city. Philadelphia has always been the centre of American history and in the 18th century was the country’s first capital. It is difficult to believe that not only as foreclosures sneaked into such a prospering zone but is fast gnawing into its entrails causing widespread concern. This time the legal fraternity have come forward with rescue efforts to plug the holes.

A plan of action was detailed by Philadelphia Common Pleas Court on Wednesday 9th April that gives rise to optimism that it might reduce the foreclosure numbers plaguing the city. Judge Annette Rizzo headed a steering committee to give the finishing touches to the plan. She was helped by lawyers of the lending community as well as those of the house owners and social service bodies. Cases related to foreclosed properties that are occupied by the owners will be diverted to a special court track. This will give the borrowers some time to sort out matters with the help of legal advice and counseling with the lenders. All the foreclosed properties that are owner occupied will not be put up for court sale without negotiated talks. After 30 0r 45 days of the issuing of the foreclosure notice, the talks are to be held with both parties being present. Five days prior to the scheduled talks the borrower is to meet the counselors. The latter will apprise the house owner of the details of the negotiation and what lines the discussion will take place. If however the house owner does not respond or appear at the negotiating table or declare that the situation is totally beyond his or her capacity then the foreclosure procedure will continue as usual.

On 27th March 2008 the City Council of Philadelphia announced a temporary hold on house foreclosures. The court sales scheduled for April were postponed after the measure (non-binding) got the support from Sheriff John Green and Common Pleas Court President, Judge C. Darnell Jones. Foreclosure sales due in April and May were postponed for the June period.

Michael McKeever spokesperson of the law firm representing the lenders commented that the lenders must now positively come forward to solve the foreclosure problem – in fact this is a good opportunity for them to show their sincerity in the matter.

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