MO SB670

Establishes a foreclosure dispute resolution program allowing owner-occupants of residential property to elect mandatory mediation with mortgagees to negotiate loan modifications or avoid foreclosure before nonjudicial foreclosure proceeds.

Requires mortgagees to file notice of default with the division of finance within three days and pay a $550 filing fee; owner-occupants have 30 days to elect participation in dispute resolution after division notification.

Owner-occupants may convert nonjudicial foreclosure to judicial foreclosure by filing a petition within 30 days of receiving notice of default, allowing defenses and claims to be heard in court.

Prohibits mortgagees from foreclosing during dispute resolution stays, bona fide loan modification negotiations, federal loan modification program participation, or short sale escrows with offers 5% greater than public sale price.

Violations of foreclosure notice requirements and prohibited practices constitute unlawful merchandising practices; mortgagee noncompliance with dispute resolution may result in fines up to $1,500 and foreclosure stays.