Minimal Success for Florida’s Mandated Mediation Program

If you are in foreclosure, the Florida Supreme Court has ordered that you participate in a mandated mediation program.

Unfortunately, only 3.6% of the cases eligible for mediation actually resulted in a written agreement between the borrower and lender as reported by the Florida Bar news.

At Sunshine State Bankruptcy, we know exactly why the program isn’t working, the reality is that lenders simply don’t know who owns the mortgage and, in many cases, the mortgages were bundled into an investment instrument called secured mortgages. Those investments were sold and sold and resold. The reality is that many people aren’t sure who actually own the mortgage income. And, even worse yet, even if they know, the lenders want every dime they are owed. After all, they are investors who look to make money and not fairy godmothers who want to help mortgage holders behind in their mortgage payment.

The Florida legislature is exploring options and the courts have formed a work group to make recommendations to continue, modify or eliminate the mediation program.

The legislature is open to considering non-judicial foreclosure to reduce the back load of more than 350,000 foreclosures. The idea, quite frankly, can jeopardize Floridians rights to expediency, particularly when we are talking about your home.

Non-judicial foreclosures will probably reward nationwide banks for the paper work problems that they caused, including bad notarization, robo-signing, and faulty assignments. There is a good reason why we need a judicial foreclosure process and that’s to protect Floridians from the foreclosure scams and outright fraud that has been perpetuated on Florida homeowners.

We will keep close watch on the Florida legislature’s action in the next session.

You can learn more about whether or not bankruptcy may help you deal with your foreclosure or deficiency judgment by contacting us at 727.258.4999.

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