The Court has ordered mediation; do I really need an attorney?

After my interview on CBS 12's Good Morning South Florida this past weekend, I had come to realize that many South Florida homeowners seem to think that foreclosure mediation is somewhat of a guarantee that the bank will modify their mortgage. This misunderstanding leads homeowners to believe that there is no need for them to incur the expense of an experienced foreclosure defense attorney.  Having represented hundreds upon hundreds of South Florida homeowners in these matters, foreclosure mediation is not a fail-safe or guarantee of a loan modification.

However, as a true advocate of foreclosure mediation and as one of South Florida's foremost foreclosure defense attorneys I have attended numerous mediations on my client's behalf all of which I'm happy to say resulted in a settlement.

Another misconception is that the judge assigned to your case attends mediation, this is not the case. Only the mediator, the homeowner and their attorney (if they have one), the bank representative and the banks attorney attend the mediation.

A foreclosure mediator is a Florida attorney and certified Circuit Court mediator, he/she is simply acting as a neutral third-party; they are not there to advise, defend or make suggestions to the homeowner on how to cut expenses to qualify or how to negotiate a modification.  As a mediator they are not supposed to advise either party. They may ask somewhat probing questions, but that's it, it's sort of like walking a tightrope especially when the homeowner isn't represented by an experienced real estate and foreclosure defense attorney.

Homeowners must be extremely cautious, because in most cases there isn't even true mediation. What I mean by that is that there's little if any negotiation that truly occurs at the table. In the majority of the cases especially where the homeowner is not represented by an experienced real estate and foreclosure defense attorney their financial information is simply uploaded into the lenders computer system to analyze the homeowners' debt-to-income ratios. This being the case, the smallest monthly bill could push the homeowners' ratios over the required threshold causing the modification to be denied. This could mean that the homeowner would now have to consider liquidating the house through a short sale or a deed-in-lieu of foreclosure and eventually be forced out of their home.

To sum it up;mediation is not a guarantee of any settlement and will only work when all of the right people are in attendance, especially a qualified competent Circuit Court certified mediator, the homeowners' attorney and someone from the bank that has the authority to make decisions.

Remember - - - the bank has an attorney, so should you! This is a legal matter and as such should be handled by a qualified legal professional, specifically an experienced real estate and foreclosure defense attorney.

I am here to educate and protect Florida homeowners, so get the legal advice you need, understand your rights, and know your options. Call me today for a FREE initial consultation (561) 392-7031.