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Mandatory Mediation for Struggling Homeowners
In the battle between foreclosure and financial stability, homeowners who are behind on their mortgage may have an extra glimmer of hope - mandatory mediation. In this process, lenders are required by the specific county to negotiate with a homeowner prior to the property going into foreclosure. Lenders are also required to front the fees for the mediation process, including any foreclosure filing fees, and need to provide a bank representative to facilitate the mediation.
While some lenders think the idea of making mortgage modifications mandatory is just adding another bill to their overall expense, the success rate so far shows that it may be a good start. Currently, the program is only offered in three areas in Florida: Stuart, Pensacola, and Miami-Dade. Additionally, only properties that are homesteaded qualify for the process. Even with such a small list of cities participating, however, a whopping 76% of cases that go through the mediation process get resolved, indicating that this may be a foreshadowing of things to come.
Borrowers eligible for the program must also be aware that they will need to supply the bank in question with both personal and financial information. However, if the lender is able to modify a mortgage down to a reasonable amount, it is well worth the effort.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
Information for this article courtesy of The Miami Herald and Florida Realtors.
