St. Louis County Approve Foreclosure Mediation Measure
Under a new St. Louis County ordinance, banks will have to participate in formal mediation before foreclosing on a home.
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A new St. Louis County Council ordinance would require a formal mediation between banks and lenders before foreclosing on a home in St. Louis County.
The measure was approved 5-2 recently along party lines. The council's Republican members, Colleen Wasinger, of Town and Country, and Greg Quinn, of Ballwin, voted against the measure.
According to the St. Louis Post-Dispatch, the bill's sponsor, Councilwomaman Hazel Erby, 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.
Brian Penny
3:00 pm on Tuesday, September 4, 2012
Remember the term Force-Placed Insurance, as it is the leading cause of foreclosures since 1994. False placement of illegally and artificially inflated premiums have been proven to create a negative escrow account, which leads to increased mortgage payments, blocked tax payments, and denial of a loan modification.
Read chapter 2 of my firsthand account as a bank whistleblower uncovering the largest bank fraud in history here: http://thoughtforyourpenny.blogspot.com/2012/07/the-boy-who-cried-force-placed.html