What to expect at a foreclosure case mediation?
The purpose of the mediation at its highest value is a loan modification for the borrower. All banks have different standards that borrowers are supposed to meet, and all banks offer different outcomes. Some are willing to reduce the principal and adjust it to market value (which is a great help for someone with an “upside down" house), others will work and reduce the interest, and some will work to re-distribute the delinquencies on a loan. Florida Mediations are great because they put the banks under a microscope, and it forces them to actually review the loan modification application. It is usually best to mediate the matter early in the case, to try to dispose of the case before extensive discovery is done, or prior to the matter being set for summary judgment or trial. In Miami Dade County, Florida if a property is your homestead, the parties are mandated to mediation. Even if the client fails to comply with the Court’s initial mediation, the parties can still agree to mediate at a later time and with a private mediator, which will usually yield results. Even if the client is not modified at the mediation, the mediation will speed up the loan modification process as again it will start the process, which will need to be finalized at some point during the pendency of the foreclosure action.
Ray Garcia, Esq. Board Certified in Real Estate Law by the Florida Bar www.raygarcialaw.com