The state legislature has passed a bill that will help homeowners who are facing foreclosure.
Jamestown’s state senator, Dawn Euer, introduced the legislation to preserve the process established by the 2013 Foreclosure Mediation Act.
Before 2013, the foreclosure processes in Rhode Island had relatively few restrictions. The mediation act requires lenders to advise borrowers of the availability of a “mediation process” before the lender could proceed to foreclosure. If a homeowner requests mediation, the lender is required to participate in good faith and cannot proceed to foreclosure until a mediation coordinator issues a certificate affirming that the lender has complied with the law.
“To a lender, a mortgage might just be a line on a spreadsheet,” Euer said. “But to a homeowner, it’s so much more than that.”
The program was originally slated to end in 2018, but lawmakers passed a five-year extension. It is currently set to expire in 2023. If Gov. Dan McKee signs the bill into law, this legislation makes the protections permanent.
“These additional protections help people get back on their feet, stay in their homes and keep paying their bills,” Euer said. “That’s better for everyone.”
