Worcester City Council Approves Moving Forward with Foreclosure Mediation Ordinance
Tuesday, November, 19, 2013
Members of the Worcester City Council in Worcester, Massachusetts have given overwhelming preapproval to new legislation that would require mediation between lenders and homeowners before foreclosures can occur within the city. Another vote will occur in two weeks and with final approval, the ordinance will be enforced 31 days following that vote.
The decision to pass the ordinance was the result of the brainstorming efforts of a grass-roots community improvement group, the Worcester Anti-Foreclosure Team. After discussing ways to lower the number of vacant homes within the city limits, the Worcester Anti-Foreclosure team determined that Worcester should follow the example of other cities across the country using foreclosure mediation to successful lower the rate of foreclosures occurring locally. Worcester City Council obviously agrees; however, the administration of the city currently wants to wait to see how successful the program is in other cities before adopting it in Worcester.
In fact, City Manager Michael V. O’Brien, as City Manager, was vocal in his advice to the City Council to avoid passing the ordinance until the similar ordinance in Springfield, Massachusetts had a chance to prove its effectiveness (or lack thereof). His worry was that the legal review currently underway in Springfield would present problems in that city, as lenders have already started to bring lawsuits against the ordinance’s legal standing.