.

County Passes Foreclosure Mediation Bill

Under a new St. Louis County ordinance, banks will have to participate in formal mediation before foreclosing on a home.

A new St. Louis County Council ordinance sponsored by Hazel Erby, D-University City, would require a formal mediation between banks and lenders before foreclosing on a home in St. Louis County.

The measure was approved 5-2 Tuesday along party lines. The council's Republican members, Colleen Wasinger of Town and Country and Greg Quinn of Ballwin, voted against the measure.

Erby, according to the St. Louis Post-Dispatch, was thrilled with the passage of the ordinance

"If we can keep some families from experiencing the heartache of foreclosure, then this (bill) will be a success," she said.

The bill is designed to slow the rate of foreclosures in the area.

According to St. Louis Public Radio, lenders believe the county is overreaching its constitutional limits in the state. Some say the ordinance will hurt lenders and borrowers alike while driving up interest rates.

Supporters of the bill have disputed those claims, asserting that problems have not cropped up states that have similar mediation laws.

Banks that do not abide by the new ordinance face a $1,000 fine. 

dee preston September 09, 2012 at 05:30 PM
Until defense lawyers get off their lazy butts this won't do any good. It will not drive up interest rates-thats all rigged remember? If the defense lawyers just looked into the origination, the faulty appraisals, the fraud in the transfers, the robosigners, the insurances and reinsurances, the homeowners would be in the drivers seat- not in the back seat with no way to navigate!! Seriously, it boils down to laziness or stupidity....both are very bad.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something