Information on the Florida Mortgage Mediation Program.

The state of Florida is working on a program that will help people who are struggling to pay their mortgages. The goal is to prevent more foreclosures by helping homeowners across the state. The Florida Supreme Court has partnered with local government entities to create a new program. The court wants judges to make sure that anyone who is about to lose their home because of foreclosure goes through a mediation process. The goal is to reduce the number of foreclosure filings, which would help speed up the court system.

The new regulation is from the chief judges of the 20 judicial circuit courts in Florida. The mediation requirement will start in early 2010. Additionally, Florida homeowners have many other options to prevent foreclosures. They can call a HUD approved agency to inquire about these options.

What is mediation and how does it work?

The process of mediation involves a neutral third party who helps both sides of a disagreement or case to reach a settlement. The mediation process for real estate ensures that the homeowner and lenders come together to discuss solutions. The new requirement will only affect foreclosure cases filed on a borrower’s primary residence, starting in 2010 after a local order is issued. The process will be mandatory, and the requirement will be waived only if both the borrower and lender agree to opt out or if the issue has been resolved even before reaching the mediation sessions.

To be eligible for the Florida foreclosure mediation program, homeowners across the state must first speak with a foreclosure counselor who is certified by the U.S. Department of Housing and Urban Development. Homeowners who receive counseling and advice are less likely to default on their mortgages and avoid another foreclosure.

Quick Read :  Get help with hospital bills in Colorado

The process is simple. The mediation hearing needs to be scheduled a few months after the foreclosure suit is filed by the bank or lender. The state requires the lender or mortgage servicers to pay for the mediation process, which the court order said can’t exceed $750. If the mediation process is unsuccessful, the lender can seek to recover the cost from the homeowner through a foreclosure judgment.

The borrower may need to pay a fee because they are using someone else’s money. The reason for this is that if borrowers are required to pay part of the mediation cost upfront, it would act as a obstacle to the court’s goal of managing these foreclosure cases efficiently to avoid wasting judicial and party resources. This means that the program is more likely to be effective. However, a fee at the end of the process will help reduce the number of cases that are filed that will not be resolved.

Tenants who are having difficulty paying their rent can opt into a mediation program, where they would meet with their landlords to try to come to an agreement. However, they would have to split the cost of the mediation with their mortgage servicer or lender.

The mediators in the program should come from non-profit organizations that are independent from the judicial branch, are well trained, politically and professionally neutral, and are able to sustain operation and service without affecting the courts’ budget. Most importantly, the mediators should be able to manage a high volume of foreclosure actions across the state.

Quick Read :  Plymouth County community clinics and health centers.

The Florida high court’s order requires mortgage lenders and servicers to prove they hold the promissory note. The order also requires the creation of a statewide reporting system to collect data on mediation outcomes so that the program can be improved over time.

How to start foreclosure mediation in Florida

The notice of foreclosure from the bank or lender should include details on the foreclosure process. Other options are available to you. Florida HUD counseling agencies can help you with your housing needs. In addition, you may be able to start to receive assistance from a mediator even before the filing occurs. You can also ask the HUD counseling agency about this service.

Leave a Reply