HB 58 Summary

• Establishes an Automatic Residential Mortgage Foreclosure Mediation Program requiring mediation for owner-occupied one-to-four family residential properties before foreclosure judgment or sheriff's sale.

• Requires plaintiffs to pay a court-determined mediation fee to fund the program, with fees collected to cover mediator compensation, administrative expenses, and support for housing counseling agencies and legal services providers.

• Mandates homeowners meet with a housing counselor and file a Certificate of Participation within 30 days of receiving the foreclosure notice to participate effectively in mediation.

• Schedules mediation conferences between 45-75 days from service of the foreclosure notice and prohibits judgment entry until the day after the mediation conference date.

• Allows parties to explore alternatives to foreclosure including loan modifications, repayment plans, deed-in-lieu arrangements, and other mutually agreeable resolutions during the mediation process.

• Extends the deadline for defendants to file answers in foreclosure actions subject to mediation until the date of the scheduled mediation conference.

• Applies only to foreclosure actions commenced during the two-year period following the act's effective date (120 days after enactment).