Foreclosure Mediation in Florida

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 over 700,000 foreclosures filed last year.  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. 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.

Mediation enables troubled homeowners and their attorney to meet with their lenders at the bargaining table to renegotiate the terms in their mortgage and address other issues and circumstances surrounding the borrower's default. Mediation not only removes the lack of communication between the parties, but 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 or deed in lieu of foreclosure, is a more appropriate and reasonable solution.

The Mediator is an impartial and neutral third party.  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.

Deborah A. Carman has more than 27 years experience both as an attorney and mediator handling a variety of real estate matters in Florida, including foreclosure defense, mortgage modifications, short sales, deed-in-lieu of foreclosure and strategic default.

Contact a Florida Foreclosure Attorney today!