Pending bill will require banks to mediate with homeowners before foreclosure

Posted on Friday, April 5th, 2013 at 6:00 pm    

A bill pending in the North Carolina Senate said it will require banks and homeowners to undergo formal mediation prior to starting a foreclosure.

Tarboro Democrat Sen. Clark Jenkins introduced the bill in response to troubled homeowners. Despite the stipulation of the $25 billion settlement reached last year in which five of the largest banks were made to ‘clean up’ their mortgage servicing and foreclosure practices, many homeowners are still struggling to avoid foreclosure and make their mortgage payments.

The mediation bill, written to be similar to those in Connecticut and Washington State, is meant to end the bank practice of scheduling foreclosure hearings and sending legal notices despite working on a loan modification with the homeowner.

N.C. Justice Center director Al Ripley, who also worked with Jenkins to craft the bill, said people continue to have problems getting good mortgage servicing from big banks and their mortgage service providers.

Facing foreclosure on your home is a frightening prospect. Fortunately, our legal team at the Bradford Law Offices, PLLC, can help you find the best financial options to potentially help you avoid this serious loss. Call (919) 758-8879 to learn about foreclosure and debt negotiation options that could be available to you.