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Best Foreclosure Strategy: Renegotiate Mortgage in Mediation

Mon Jun 22, 2009 by on Florida Foreclosures

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.

Tags: Florida Supreme Court Task Force, foreclosure, foreclosure mediation, Loan Modification, mandatory mediation, mediation

2 responses to “Best Foreclosure Strategy: Renegotiate Mortgage in Mediation”

  1. Raul F. Rios says:

    Dear Gentlemen:
    I am awaiting response from my lender who I requested to modify my loan. It is taking little long but the promise is that they will answer by mid July.
    Meanwhile I have been served with the forclosure documents which I have already answer within the 20 day window.
    If you have any advie I will very much appreciated.
    Regards
    Raul F. Rios

  2. […] both the Bush and Obama Administrations have been focusing on using government funding to support mortgage modifications, thinking that by reducing the monthly cash flow obligations of particular families or investors […]