Judges May Assist With Foreclosure Prevention

In the latest attempt to speed up the foreclosure process, judges may soon become intimately involved with homeowners and lenders. Yesterday the Senate Judiciary committee approved the Limiting Investor and Homeowner Loss in Foreclosure bill, which will give judges authority to meet with homeowners and their lenders in foreclosure mediation proceedings. The bill will now go before the full Senate.

This act, while not as broad as past proposals to allow judges to modify mortgages, will basically give judges the authority to open lines of communication between lenders and distressed property owners. The goal is to help the homeowner avoid foreclosure and get the ball rolling on possible options.

The state of Rhode Island already has a similar program that has been successful. While this bill will not prevent foreclosures it may be a positive step in helping many homeowners, as many know too well that just starting a conversation with someone in the loss mitigation department can be beyond difficult.

Requiring lenders and homeowners to meet face to face adds a human element and prevents the homeowners from being seen as mere pieces of paper in a file on top of a crowded desk.

Share

Leave a Comment