The Iowa Senate has unanimously passed a bill which may help Iowans who’re in danger of losing their homes in foreclosure. If the bill becomes law, Senator Rob Hogg says banks, credit unions, and savings and loans considering foreclosure will be required to first send a notice to a homeowner about the potential for mediation to try to reallign or even reduce their mortgage payments.
"I believe this is one of the most important bill that we will pass this year to deal with the current economic situation that we are facing," Hogg says. According to Hogg, more than 900 Iowa homes were in foreclosure in the month of December.
"In 2008, more than 5,400 properties were subject to foreclosure actions, a number that is up as the national recession begins to overtake Iowa — up 136 percent from 2006," Hogg says.
Hogg argues the bill helps not just individual homeowners, but communities as well "by reducing the red tape that they face that currently stops foreclosed property from being resold and returned to productive, active use."
Under the bill a bank, savings and loan or credit union that has already foreclosed on a home would be able rescind that foreclosure and let the owner stay in their home if a deal is struck to reconfigure the mortgage. "This is a good bill to pass," Hogg says. "It will help Iowans facing real problems."
Click on the audio link below to listen to senate debate of the bill.
Hogg, a Democrat from Cedar Rapids, says the legislation provides new "procedural protections" to Iowans facing foreclosure on their home. The bill now goes to the Iowa House for consideration.