Column: Here's a foreclosure mediation that works

Tina Tylisz is weary from her nearly two-year foreclosure fight. She has applied and been denied for every government program she's heard of.

When her husband became disabled, the family's income was cut dramatically. But Tylisz, a mother of three, said she could save her home if the lender would just lower her payment.

"I don't know what else to do," she said, fighting back tears. "I can't believe there's not a program out there to help people like me."

If only, she says, she could force the lender to sit down at a table, look her in the eyes, and sincerely try to work something out.

Well, there's a new program in Hillsborough and Pinellas County designed to do just that. Problem is, few homeowners seem to know anything about it. And with so many scam artists preying on those in foreclosure, many homeowners don't know who they can trust.

New circuit court programs in Pinellas, Pasco and Hillsborough counties are underway.

The idea is to help clear a backlog of tens of thousands of homes that clog the court system. Pinellas and Pasco counties launched a foreclosure mediation program July 1, and Hillsborough began offering its program Aug. 2.

The programs were mandated by the Florida Supreme Court. Everyone entering the programs will have a chance to mediate with their lender instead of going through traditional court proceedings. Homeowners, however, don't have to participate. Some decide instead to walk away.

But if a homeowner of a primary residence wants to try one last time to save their home, their lenders are required to participate. Lenders also are required to pay for the mediation - a wide misconception by homeowners who worry they'll have to foot the bill for something that may not even work.

Even so, getting homeowners to come to the table for the last-ditch effort to stave foreclosure isn't easy, said Dick Rahter, president of Mediation Managers Inc., the non-profit charged with administering the program for the 6th Judicial Circuit, which serves Pinellas and Pasco Counties.

"There are a lot of scams out there," Rahter said. "People aren't trusting, and I don't blame them."

Rahter's agency is responsible for contacting eligible homeowners to let them know about the program. Homeowners now also receive a letter with their foreclosure lawsuit to inform them of their rights to mediate.

"People are so overwhelmed when they get those papers that I don't even know if they read the letter long enough to understand it," Rahter said.

In Hillsborough, the 13th Judicial Circuit chose the Hillsborough County Bar Foundation to serve as its program manager.

Anna Thomas, one of the directors of the program, said Hillsborough is also working to overcome homeowner apprehension.

"We do have active cases," Thomas said. "We're finding these are not people who singed on for more than they can handle. They've experienced job loss or health problems or loss of income."

When the Florida Supreme Court issued the order late last year, there were more than 465,000 cases clogging the court system in Florida.

Foreclosure isn't a quick process. It can drag on for years. One advantage for those who opt into the mediation program is a much quicker turn around. The court order mandates a resolution within 120 days.

Another confusing part: It's not always apparent to the homeowner who qualifies for the new programs

The law says only primary homeowners who received initial foreclosure filings after the programs started are guaranteed participation. However, Rahter said he encourages anyone wanting to try to save their home to request the mediation.

In his circuit, several homeowners have already been granted mediation by a judge. Some cases have progressed to the point that mediation meetings will soon be scheduled.

So, how are lenders responding? For the most part, Rahter said, they don't like it. But they know they don't have a choice.

The Supreme Court's intention here was good -- working through the backlog of foreclosure cases so judges can move on to other matters. In the process, the programs could also mean a lot more homeowners keep their houses.

It won't work, though, if homeowners don't try.

And in the case of distressed owners like Tylisz, the program won't work if they don't know about the opportunity.

"I've never heard of this," she said. "But I will certainly call."