Foreclosure Reform Bill to be Unveiled Wednesday at Capitol
A trio of DFL lawmakers plans on Wednesday to unveil a foreclosure reform bill at the Capitol that would spare Minnesota homeowners some of the "unfair practices" that the representatives believe have become notorious.
"I wanted to do what I could to prevent it from happening again," said first-term Rep. Mike Freiberg (DFL-Golden Valley), who is introducing the bill in his first week on the job.
Freiberg says he was inspired by a constituent who is fighting to win her home back from foreclosure.
"She was the victim of some difficult, unfair practices," Freiberg said in an interview Tuesday.
The bill, HF83, would:
- Prohibit "dual-tracking" where a lender can foreclosure on a home even while negotiating with the homeowner for a loan modification;
- Require a lender to participate in mediation, if requested by the borrower;
- Provide a single point of contact at the lender; no more confusing voice mail trees; &
- Add protections for members of the military.
A news conference with Rep. Freiberg; Rep. Karen Clark, chair of the Housing Finance and Policy committee; and Rep. Raymond Dehn, is scheduled for Wednesday at 11a.
The bill's first hearing is set for 12:30p in the State Office Building.