Banks may have the right to schedule a foreclosure sale for past due borrowers, but in St. Louis County, homeowners will get a chance to schedule a mediation with their lender before facing foreclosure.[IMAGE]
On August 28, the St. Louis County Council passed an ""ordinance"":http://www.southlaw.com/Compass/MediationOrdinance_StLouisCounty.pdf that will require lenders to provide homeowners with a notice advising them of their right to request mediation. If lenders violate the ordinance, they face fines up to $1,000.[COLUMN_BREAK]
If homeowners do request mediation, a mediation coordinator, or person in charge of managing the mortgage foreclosure intervention program, must schedule a mediation conference within 60 days of the date the mediation notice was sent. The lender will then have to pay a $350 fee to the mediation coordinator.
Homeowners must submit documents such as a completed financial statement, a completed housing affordability form, and an opinion of the condition of the property at least 10 days before mediation.
The ""St. Louis Post Dispatch"":http://www.stltoday.com/news/local/metro/county-to-require-mediation-before-foreclosure/article_e9315fcc-f189-11e1-87e6-0019bb30f31a.html reported the bill passed with a 5-2 vote.
""If we can keep some families from experiencing the heartache of foreclosure, then this (bill) will be a success,"" Councilwoman Hazel Erby, D-University City, the bill's sponsor, told the St. Louis Post Dispatch.