SB 336 Summary

• Establishes a foreclosure dispute resolution program allowing owner-occupants of residential property to elect mediation before nonjudicial foreclosure proceeds, with sessions facilitated by neutral parties assigned by the division of finance.

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

• Allows owner-occupants to convert nonjudicial foreclosure to judicial foreclosure within 30 days of receiving notice of default, enabling court consideration of claims and defenses.

• Prohibits mortgagees from completing foreclosure during short sale escrows (if offer is 5% greater than sale price), bona fide loan modifications, or while mortgagors are being evaluated for federal loan modification programs.

• Establishes penalties including fines up to $1,500 and foreclosure stays for mortgagee noncompliance; violations constitute unlawful merchandising practices under Missouri law.