The Senate Judiciary Committee has approved a legislative proposal that would authorize bankruptcy courts to order mediation between homeowners and lenders before proceeding with the foreclosure process. The potential legislation, titled the Limiting Investor and Homeowner Loss in Foreclosure Act, passed by a slim 10-8 margin and would give the federal bankruptcy judges the ability to order the homeowners and their creditors to mediation in an effort to open the lines of communication between the two sides in hopes that the sides will survey options other than foreclosure.
The legislation would not give bankruptcy judges the authority to modify mortgages of write-down or "cram-down" mortgage principle like other foreclosure prevention measures that have failed gain approval over the last few years. The bill is modeled after a similar law being used in Rhode Island. The Rhode Island bill does not require settlement, just "good faith negotiation". To date, the law has been credited with saving at least 120 homes from foreclosure.
It seems as though the members of the House and Senate are now hearing the cries of struggling homeowners and are beginning to do something about it. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure alternative options may be available to you.
