“We have enhanced and expanded a state program created by the legislature that has already helped many homeowners stay in their homes and avoid costly litigation while they try to work out an agreement with their banks,” Gentile said.
“It will also help reduce the number of abandoned houses that can drag down the property values of neighboring homes.”
Gentile explained the legislation (House Bill 6355) strengthens and streamlines the foreclosure mediation process by creating rules to reduce needless delays and endless requests for paperwork.
In addition, all parties must mediate in good faith or face sanctions, fines or dismissal of the foreclosure.
The bill ensures that homeowners engaged in mediation will not simultaneously face foreclosure-related litigation. It also streamlines the foreclosure process on abandoned houses to let banks sell properties in an effort to reduce neighborhood blight.
This post is taken from a press release from Gentile's office.