Statehouse Bill Would Require Lenders To Mediate Before Filing A Foreclosure Action

Currently in Ohio before filing a foreclosure action, the lender is not required to participate in a mediation program.  This may soon change as Ohio State Representative Matthew Dolan proposed a bill in the Ohio House, which would make mediation mandatory before filing a foreclosure.  Under House Bill 306, a lender would be required to come to the bargaining table before a foreclosure action is filed.  If the lender refuses to mediate with the property owner, the foreclosure action could be dismissed.  The rule for mandatory mediation would not apply to homes in foreclosure for delinquent property taxes, unoccupied residences, or foreclosure actions where the homeowner does not reply to the summons within 28 days of issuance.  The bill requires that the mediation take place by a court appointed mediator within 60 days of receiving an answer to the foreclosure complaint.  If the filer of the foreclosure action does not attend the mediation hearing, the court may dismiss the foreclosure complaint.

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