Attorney General Lori Swanson is again calling for a statewide mediation process for Minnesotans facing home foreclosure.
Swanson and two DFL legislators said Wednesday they will repeat last year's efforts to pass the Homeowner-Lender Mediation Act. The House and Senate passed the measure last year, but Gov. Tim Pawlenty vetoed it.
Swanson said financially-squeezed homeowners continue to have problems getting the attention of their lenders. She said a non-binding negotiation would help cut through the red tape.
"We're seeing home after home that doesn't have to be lost, where there can be some type of reasonable modification if people can simply get live people on the phone and get the paperwork processed," Swanson said. "So the idea is get people to the table to talk to try to solve the problem where you can."
DFL Sen. Linda Scheid of Brooklyn Park said both sides benefit from avoiding home foreclosure.
"I think it's in the bank's interest, in any lender's interest to see that people are able to stay and keep communities strong and our state strong as well," Scheid said.
Scheid said she'll introduce the same bill that passed in the final hours of the 2009 session.
In last year's veto letter, Gov. Pawlenty said the bill was well intended but problematic. His spokesman said the governor will still have concerns if the bill remains unchanged.