Philadelphia is one state that has more experience dealing with foreclosures than the rest of the country. Some 8,000 Philadelphia foreclosures are expected to come online for 2008 and the city has initiated several steps in order to curb its menacing effects. These programs are aimed at protecting borrowers and helping them to find resources to make their payments and prevent them from losing their homes.

One such program is called the Residential Mortgage Foreclosure Diversion Pilot Program which was initiated last April 2008. What this does is forces both the borrower and lender to meet with a duly designated court official in order to renegotiate the loan terms so that the homeowners can remain in their homes and be able to commit to making more affordable payments. Both parties have between 30 to 45 days from the filing of the foreclosure notice to coordinate and meet. So far, of the 552 homes that became part of the program, 230 homes were permanently taken off the sales listing and 200 had their sales schedules postponed for one to five months. This program has been lauded as one of the most effective and programs for Philadelphia foreclosures ever initiated and will be in force until 2009.

The Federal Reserve Bank of Philadelphia also has launched a virtual Foreclosure Resource Center very much a one-stop shop for Philadelphia foreclosure homeowners, interested buyers and community groups. Concerned homeowners now have a venue to look for legitimate information on how to combat foreclosure of their home. They may also find and connect with trustworthy providers to assist them with housing counseling, financing programs and legal services. Community groups will also have greater access to foreclosure data so that they can be more informed and be able to make better plans for the benefit of the neighborhood.

With all these programs in place, authorities expect that Philadelphia foreclosures may be lessened, for the salvation of the homeowners and their property, for the compensation of the lenders and for the good of the community in general.