Legislation was filed today by Boston Mayor Thomas M. Menino with the Boston City Council that would require banks and mortgage companies to participate in a mediation session before they are allowed to foreclose on a homeowner.
The legislation, entitled the Home Rule Petition, would also give the city of Boston the authority to establish a mediation program, according to a statement. If passed by the City Council at its council meeting next week, the proposed legislation will then be filed with State Legislature for further action.
"This ordinance is so important because it requires the banks and the mortgage companies to meet face to face with a homeowner to determine whether a solution can be worked out," Menino said. "Requiring mediation could really make a difference to Boston families – especially during these hard financial times."
The goal of mediation sessions would be to ensure the homeowner is in a better position to understand their options, according to a statement. Mediators would be required to have mediation experience and have working knowledge of all federal assistance programs currently available.
"Our foreclosure counselors have been frustrated at the non-responsiveness of lenders to help homeowners keep their homes," said Bill Minkle, executive director of ESAC Boston. "This is a pivotal proposal because it will require lenders to meet with the homeowners experiencing economic hardship and negotiate in good faith. The goal of lenders should be to avoid foreclosure whenever possible. Foreclosure is good for no one."
