The Mayor of Providence Rhode Island put into place a city ordinance that will ensure lenders and banks meet with homeowners before foreclosing on their home. The rule puts in place a mandatory mediation process. The details of the Providence Foreclosure Mediation Ordinance include:
The main goal of the foreclosure mediation ordinance is to delay the process, and allow time so that the homeowner and lender can agree to and arrange a modified payment plan as an alternative to filing a foreclosure and the homeowner losing their residence. The process requires that a meeting between homeowners and lenders takes place, and it needs to be moderated by an independent third party that is approved by the federal Department of Housing and Urban Development. A state agency, Rhode Island Housing, has agreed to be that third-party counseling agency that supplies mediators and works with all parties involved.
Any mortgage holder or bank that fails to comply with the requirements of this assistance program would not be able to file a deed of ownership with the city, which is a step that is necessary to complete the foreclosure process. This new ordinance put in place will make a big difference, as it provides real incentive for banks or mortgage servicers to work with the homeowners because they won’t be able to file a deed with the city. This will help reduce the number of people who lose their homes, and will ensure families are offered mortgage modifications and other alternatives.
If you are facing a foreclosure, be sure to ask your mortgage holder about this mandatory option.
Like this site?