Experts say Delaware could set a new record for home foreclosures this year.
To help curb that trend, Attorney General Beau Biden and lawmakers introduced a five-bill package in Dover as the legislative session resumed this week.
“These bills ensure that homeowners who are behind on mortgage payments are able to have meaningful conversations with their lenders about repayment plans or other options to avoid foreclosure,” Biden said.
If passed, the bill would:
Create an automatic mediation program that kicks in when a foreclosure action is filed.
Require lenders to give borrowers notice of foreclosure information on available help. Lenders would have to file court papers saying they looked at other options before a foreclosure judgment can be entered.
Require registration and bonding for mortgage modification firms and protect consumers by prohibiting advance fees.
Set up an office in the AG’s consumer protection division to manage and coordinate foreclosure prevention programs and work with lenders in tough cases.
Make filing false documents in foreclosure cases a deceptive trade practice.
Biden says the bills give his office more power to protect homeowners.
“They ensure that (we) have the tools to go after scam artists that offer a deal for homeowners who are underwater,” he said.
Since 2007, more than 22,000 foreclosure actions have been filed in Delaware.