State Legislative Update

While on the surface it seems like any legislation helping Americans keep their homes is a good idea, some critics question the effectiveness of these laws. They cite evidence (to be discussed below) showing foreclosure rates do not improve in states with foreclosure mediation laws. Others argue that while it may only be a short-term fix towards the larger problems that ail our economy, foreclosure mediation has shown to be a positive measure that helps many Americans, especially when the law is properly written. This paper will analyze the recent foreclosure mediation laws, and will explore the effectiveness of this legislation as a method to confront the foreclosure crisis.

It will begin by looking at the conflicting opinions over whether foreclosure mediation programs work. It will then examine what language or provisions can be included in foreclosure mediation bills to give foreclosure mediation the best chance to succeed, as not all of these bills are created equally. Next, it will analyze the four recent bills listed above to see whether they put their states’ foreclosure mediation programs in a good position to succeed.