Well the early statistics are in http://bit.ly/RsUIQ. As expected, we are finding in Florida that the likelihood of completing a loan modification is much higher if conducted with a mediator under court supervision. That’s why it’s likely why we can anticipate that the Florida Supreme Court will require mandatory mediation in every foreclosure action. In fact, in the few Florida counties where mediation is already required a whopping 50% of the foreclosures are settling usually with a new loan amount, a decreased interest rate and with a new lower payment.
It is just unfortunate that borrowers need to take the lenders to the wall before they get the bank’s attention. We are seeing and hearing too many times when the banks just won’t cooperate with a modification until the person is in foreclosure and defended by competent counsel.
I’m not sure if it’s because the borrowers can’t get someone with authority to talk with and negotiate with until they get to mediation or if it is because the banks are just too overwhelmed in the first place.
In any event let’s just hope that the Florida Supreme Court Task Force sees the trend as we do and does the right thing by implementing unified mandatory mediation rules for mortgage foreclosures throughout all of the Florida judicial circuits.