Tue August 21, 2012
St. Louis County Council puts foreclosure mediation on hold, for now
For the second week in a row, residents lined up to tell councilmembers that mandatory mediation would help save homeowners facing foreclosure.
But Councilwoman Hazel Erby, who sponsored the bill, moved to table its final passage at least until next week.
“We’re looking over some things,” Erby said. “We just received some letters, so, we’re taking those into consideration.”
When asked, Erby didn’t specify what additional information needed to be considered.
Bankers and mortgage companies have said mandatory mediation could have a chilling effect on credit and the county could face lawsuits over the ordinance.
“We’re confident that we can move forward, we’re confident in our legal staff here at St. Louis County,” Erby said. “We’ll move ahead, if we don’t try we’ll never know.”
County Executive Charlie Dooley has said the county is prepared for legal challenges.
Some projections have the number of foreclosures in St. Louis County reaching 4,000 this year alone.