January 28, 2011

Whitehouse Applauds Decision on Foreclosure Mediation Program

Providence, RI – U.S. Senator Sheldon Whitehouse issued the following statement today regarding the decision by U.S. Bankruptcy Court Judge Arthur N. Votolato upholding the Court’s right to run pre-trial foreclosure mediations:

“Today’s decision by Judge Votolato is a win for Rhode Island homeowners. The Rhode Island bankruptcy court’s foreclosure mediation program helps distressed families to cut through the red tape of our broken mortgage modification process and has already saved at least 100 homes in our state. I hope today’s decision will encourage other bankruptcy districts to follow Rhode Island’s lead and adopt similar programs.”

This week, Whitehouse introduced the Limiting Investor and Homeowner Loss in Foreclosure Act (S. 222) to support these successful programs. Last year he held a field hearing of his Judiciary Subcommittee on Administrative Oversight and the Courts to examine the effectiveness of mediation programs. This Tuesday he will chair a hearing of the full Judiciary Committee entitled “Foreclosure Mediation Programs: Can Bankruptcy Courts Limit Homeowner and Investor Losses?”


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