Although the foreclosure mediation process has been around for many years, until recently it's been mostly voluntary and not widely publicized to homeowners throughout Florida. Borrowers who are behind on their mortgage payments or are in serious risk of default may not be aware that this program exists or realize that they have rights and options along the way of the foreclosure process.
Currently, Florida is one of the hardest hit states in the nation, with more than half a million foreclosures lawsuits in various stages of litigation. On December 28, 2009, the Florida Supreme Court mandated mediation for Floridians who are in danger of losing their homes through foreclosure. Chief Justice Peggy Quince directed each Chief Judge of the 20 judicial Circuits to issue an administrative order addressing how the managed mediation program will be handled in their respective Circuit. This Supreme Court Order strives to reduce the foreclosure overload that is currently clogging our court system and monopolizing limited judicial resources.
State guidelines must be followed when conducting foreclosure mediation in Florida. Mediation managers are required to schedule sessions no less than 60 days and no more than 120 days after the filing of the foreclosure case has occurred. Meetings are usually several hours and lenders are required to pay a $750 fee up front, which may be recovered in the final judgment if mediation fails and the suit proceeds to foreclosure. The house in default must be the homeowner's primary place of residence and the loan must have originated under the federal truth-in-lending regulations. Exceptions to the mandatory foreclosure mediation will be granted where the borrower and the lender reach an agreement to forego mediation, mediation was previously unsuccessful, or the homeowner cannot be located.
Mediation enables troubled homeowners to meet with their Foreclosure Defense Attorney, the lender, and the mediator at the bargaining table to renegotiate the terms in their mortgage and address other issues and circumstances surrounding the borrower's default. Mediation brings both parties together in an informal setting that will help decide if modifying the loan terms or if another remedy, such as short sale on the house or deed in lieu of foreclosure, is a more appropriate and reasonable solution.
The Mediator is an impartial and neutral third party who will bring a fresh perspective to the case at hand. In the managed foreclosure mediation cases, he or she must be Circuit Court certified and specially trained in foreclosure law and mortgage modification issues.
The record volume of foreclosures in Florida is threatening to break its court system. With the new mediation requirement, the hope is that applicable cases will be directed away from the courts and handled in a more timely and efficient fashion.
If you or someone you know is facing foreclosure, consult with an experienced
Florida Foreclosure Defense Attorney experienced in foreclosure law, mortgage modifications and mediation.
Carman Law Firm, P.A. is recognized as one of South Florida's most experienced foreclosure defense firms. Deborah A. Carman prides herself on not just being a lawyer, but being a lawyer and trusted counselor. As a Florida Supreme Court Certified Foreclosure Mediator, Attorney Carman understands the requirements of the court, as well as, the needs of her clients.
The firm's personal attention to its clients' needs and desired results produces a customized approach that this firm delivers to each case. The firm is recognized for their skill and integrity having more than 28 years of experience, and participating in thousands of real estate transactions, loan modifications, short sales and foreclosure defense cases.
Attorney Carman and her experienced staff will help you through the entire process in order to help you reach an outcome that is the most beneficial to your financial future.
The Carman Law Firm has earned a reputation of legal excellence and a long history of successfully managing Foreclosure Defense cases.