Banks file suit against St. Louis County over foreclosure mediation ordinance

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by KMOV.com staff

KMOV.com

Posted on September 25, 2012 at 5:24 PM

ST. LOUIS COUNTY, Mo. (KMOV) -- A new law in St. Louis county designed to save homeowners from foreclosure is under fire, but won’t come off the books.

The Missouri Bankers Association is dead set against an ordinance that allows homeowners to use mediation, and a local bank filed a lawsuit saying it violates state law.

But the county council during a meeting on Wednesday was voting on some tweaks to the law after getting input from lenders.

It’s a law that’s in place in several others states. If a homeowner has gone through the process and is on the verge of foreclosure, they can ask for a face-to-face meeting with their lender to try to find a way to work out a plan to stay in their home.

The county is confident it’ll standup to legal challenges, but only time will tell. Until that plays out, some banks have asked the county to tweak the ordinance.

St. Louis County Counselor Pat Redington said the amendments to the proposed ordinance are not to bolster it against the lawsuit.

But some lenders who don’t like it have begrudgingly given input on how to make a few changes so they can live with it until the courts decide its fate.

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