Florida Lawmaker To Propose Foreclosure Mediation Bill In State Legislature Based On Philadelphia Diversion Program

In Punta Gorda, Florida, the Charlotte Sun reports:

• More than 500,000 Florida homeowners faced foreclosure proceedings in the first 10 months of 2008. State Rep. Paige Kreegel, R-Punta Gorda, believes he has part of the solution to the crisis.

• House Bill 205, based on a successful Philadelphia foreclosure diversion program, is being advanced by Kreegel as a means to help lenders and homeowners embroiled in the foreclosure crisis.

• "Something has to be done, and this is our first salvo into trying to do something about it," said Zachary Burch, Kreegel's legislative aide. Kreegel's Florida program would reduce foreclosures on owner-occupied residential properties by encouraging loan restructuring to allow borrowers to make regular payments again. It would allow Floridians to remain in their homes while protecting lender interests, too, according to Kreegel's office.

For more, see Homeowner, lender rights balanced by HB 205.