St. Louis, MO (KSDK) - City of St. Louis Mayor Francis Slay is backing legislation designed to protect homeowners facing foreclosure via mediation.
Twenty-five states have some form of foreclosure mediation, according to the mayor's office, and fewer than 20 percent of homeowners choose to go through mediation.
The home foreclosure mediation legislation, originating in the office of President of the Board of Aldermen Lewis Reed, would be required to pay for mediation if a homeowner requests it. A neutral facilitator would be assigned as mediator. That person would not have the power to order anything. However, the goal would be to find a way to keep the borrower in their home in a way that satisfies the lender.
If the homeowner requests mediation and the lender acts in good faith, but the foreclosure cannot be avoided, then the foreclosure will be allowed to go forward. If the lender does not participate in good faith, the foreclosure can still go forward, but the lender will be subject to a $500 fine. The entire process should be completed within 60 days.
Meanwhile, Aldermen Lewis Reed will go ahead with his plan to introduce Board Bill #160 on Friday.