Is anyone surprised?

Foreclosure mediation program produces dismal results statewide

Below is an article from todays Palm Beach Post. Now this news doesn't come as any surprise to me, or anyone involved with this 'mandatory' process. What we have found here locally is that in the majority of cases, in contradiction to the guidelines, the banks representative would say that they did not have the authority to agree to anything without some other type of approval. All for show.

The first statewide report on the Supreme Court's foreclosure mediation program is out, and at least one South Florida judge says the program is neither helping homeowners nor clearing caseloads.

About 4 percent of 57,909 foreclosure cases...ended in agreement between the bank and borrower...The success rate is higher - 27 percent - if only mediations that actually occurred are considered...Mediation was required by a 2009 state Supreme Court order as a way to lighten judicial caseloads, as well as aid borrowers - objectives Miami-Dade Circuit Judge Jennifer Bailey said have not been achieved.

"I think it's fair to say...has not significantly helped Floridians stay in their houses," said Bailey, who served as chairwoman of Florida's Task Force on Residential Mortgage Foreclosure Cases. "It is incredibly disheartening."

Florida requires that every foreclosure go through the courts, which had a backlog of 322,724 cases as of February.

In Palm Beach County, 3,252 foreclosures were referred to mediation. Of those, mediations occurred in (only)269 cases. Just 51 cases ended in a written settlement, which can include a loan modification, short sale or deed-in-lieu of foreclosure....(which equates to only 1.5% helped)

The mediations, which were heralded for their guarantee of a sit-down meeting between homeowner and lender, are for homesteaded properties only. The lender pays the $750 cost .One of the biggest roadblocks for the program has been the inability to reach borrowers, whose phones are often disconnected and who may be overwhelmed by foreclosure-related mail.

To participate in mediation, homeowners must complete a foreclosure counseling course and provide financial paperwork - tasks some home­owners reject...But Bailey also blames banks for the program's poor performance. She has fielded complaints that lenders show up unprepared and without the decision-making ability to negotiate a settlement.

"One of the most significant frustrations we've discovered is there is no effective way to police institutional noncompliance," Bailey said.

If you have been served a Lis Pendens regarding a mortgage default, contact an attorney specializing in defending homeowners in default ASAP. Comply with and attend the mediation in good faith, and contact us about your short sale options should you decide that a loan modification won't work or is not what you want.

Thanks for reading.