ST. LOUIS — The St. Louis County Council delivered final passage Tuesday night to an ordinance setting up a foreclosure mediation process, a program proponents say could slow a fast-paced system down for distressed homeowners.
The proposal, sponsored by Councilwoman Hazel Erby, D-University City, allows a homeowner facing foreclosure to enter mediation with the lender and servicer of a loan. Mediation involves a homeowner, lender and servicer meeting with a third party such as United States Arbitration and Mediation. The ordinance, which would prompt lenders and servicers to pay $500 for the mediation, would impose penalties if lenders don’t participate.
In general, foreclosures take longer in “judicial” states such as Illinois that require court action to foreclose on a home. Non-judicial states such as Missouri require documentation to be filed through the appropriate channels showing that a homeowner isn’t living up to financial obligation.
Read more at St. Louis Beacon.