Mediation in Foreclosure Cases - The Champion of Progress in Florida
November 2, 2009 By Hagen & Hagen, P.A.
An inside look and unfocused analysis of the Collins Center for Public Policy foreclosure managed mediation process and hopeful prospects for success in the State of Florida and perhaps around the foreclosure-ravaged country.
Is it a Champ? Will the establishment of the 11th Circuit Homestead Access to Mediation Program (CHAMP) work? Miami-Dade County, as well as other circuits in the Florida judiciary, has established programs to assist homeowners with efforts to resolve the spiraling real estate problems. Typically, these programs require the parties to meet in a "managed mediation" conference to discuss settlement options on primary residence foreclosure cases. Only in its infancy, it is too early to determine the ultimate success of the program.
Clearly, there are immediate benefits. As told by Senior Judge Thomas Bateman III, and prior to his retirement, another judge conveyed to him the story of a homeowner who appeared for a summary judgment hearing with the bank's attorney on the telephone for the hearing. The homeowner expressed her inability, after multiple attempts, to contact the law firm to discuss her pending short sale and the bank's attorney simply responded that they would have spoken with her had she contacted the law firm. As the story unfolds, the homeowner ironically, or sadly, worked for the law firm. Anyone involved in foreclosure, loan modification, short sale or any other real estate related proceeding or negotiation can relate to that story and understands such common frustration.
At a minimum, forcing the bank to participate in a mandatory mediation creates an opportunity for the homeowner and a representative from the bank presumably with authority to settle the foreclosure case to meet and discuss the options available. In turn, the mediation process will slow the recently coined "rocket dockets" and "15 seconds of justice". Even in judicial foreclosure states, such as Florida, the legal proceedings on a foreclosure case can move at lightening fast speed. Typically, and as reflected by the aforementioned coined phrases, the homeowner rarely appears or has less than 5 minutes on the court's motion calendar before a summary judgment is entered, case concluded and sale date set.
But, will it really work? Unfortunately, the program structure will encourage an early mediation date to be scheduled between the parties. Therefore, if the borrower feels that he or she has been a victim of predatory lending, sending the parties to an early mediation would probably be fruitless as the issues of the case still need to be addressed by the parties. The program, which cost is borne by the lender, is only available once for mortgage foreclosure cases filed after May 1, 2009, and the mediations are anticipated to begin in July.
Other factors that may prevent a meaningful mediation through the program include either the failure of the lender or the borrower in being prepared for the mediation with necessary financial evaluation or information to complete a loan modification. Some lenders disfavor the program because of the $750.00 expense that is borne by entirely the bank.
At this point, mediation in foreclosure cases is the champion of progress in the State of Florida. The state's Dispute Resolution Center, Collins Center for Public Policy and participating mediators should be applauded for their efforts to defeat the real estate difficulties confronting homeowners and lenders alike. Other states facing similar heightened foreclosure issues should pursue helpful and resources projects as initiated in Florida.
The bottom line remains that if any party, whether the government, judicial system or mediation programs, will provide you with a face to face meeting with the bank, then such effort is beneficial for the homeowner, the bank and our country. It is a work in progress, but at least...it is progress!
ABOUT THE AUTHOR: Kevin Hagen, Esquire of Hagen & Hagen, P.A. in Florida
Kevin Hagen, Esquire practices law in the State of Florida assisting borrowers with their efforts seeking solutions with the bank through foreclosure, loan modifications, short sales and other real estate issues. He is also a state certified circuit court mediator and qualified arbitrator and proponent of the efforts of the not for profit Collins Center for Public Policy with its tireless determination of the pursuit of justice. His law firm has represented both lenders and borrowers in financial legal matters including bankruptcy, foreclosures and lender liability. The firm also educates borrowers about credit and assists with the restoration of their credit worthiness.
Copyright Hagen & Hagen, P.A.
More information about Hagen & Hagen, P.A.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Clearly, there are immediate benefits. As told by Senior Judge Thomas Bateman III, and prior to his retirement, another judge conveyed to him the story of a homeowner who appeared for a summary judgment hearing with the bank's attorney on the telephone for the hearing. The homeowner expressed her inability, after multiple attempts, to contact the law firm to discuss her pending short sale and the bank's attorney simply responded that they would have spoken with her had she contacted the law firm. As the story unfolds, the homeowner ironically, or sadly, worked for the law firm. Anyone involved in foreclosure, loan modification, short sale or any other real estate related proceeding or negotiation can relate to that story and understands such common frustration.
At a minimum, forcing the bank to participate in a mandatory mediation creates an opportunity for the homeowner and a representative from the bank presumably with authority to settle the foreclosure case to meet and discuss the options available. In turn, the mediation process will slow the recently coined "rocket dockets" and "15 seconds of justice". Even in judicial foreclosure states, such as Florida, the legal proceedings on a foreclosure case can move at lightening fast speed. Typically, and as reflected by the aforementioned coined phrases, the homeowner rarely appears or has less than 5 minutes on the court's motion calendar before a summary judgment is entered, case concluded and sale date set.
But, will it really work? Unfortunately, the program structure will encourage an early mediation date to be scheduled between the parties. Therefore, if the borrower feels that he or she has been a victim of predatory lending, sending the parties to an early mediation would probably be fruitless as the issues of the case still need to be addressed by the parties. The program, which cost is borne by the lender, is only available once for mortgage foreclosure cases filed after May 1, 2009, and the mediations are anticipated to begin in July.
Other factors that may prevent a meaningful mediation through the program include either the failure of the lender or the borrower in being prepared for the mediation with necessary financial evaluation or information to complete a loan modification. Some lenders disfavor the program because of the $750.00 expense that is borne by entirely the bank.
At this point, mediation in foreclosure cases is the champion of progress in the State of Florida. The state's Dispute Resolution Center, Collins Center for Public Policy and participating mediators should be applauded for their efforts to defeat the real estate difficulties confronting homeowners and lenders alike. Other states facing similar heightened foreclosure issues should pursue helpful and resources projects as initiated in Florida.
The bottom line remains that if any party, whether the government, judicial system or mediation programs, will provide you with a face to face meeting with the bank, then such effort is beneficial for the homeowner, the bank and our country. It is a work in progress, but at least...it is progress!
ABOUT THE AUTHOR: Kevin Hagen, Esquire of Hagen & Hagen, P.A. in Florida
Kevin Hagen, Esquire practices law in the State of Florida assisting borrowers with their efforts seeking solutions with the bank through foreclosure, loan modifications, short sales and other real estate issues. He is also a state certified circuit court mediator and qualified arbitrator and proponent of the efforts of the not for profit Collins Center for Public Policy with its tireless determination of the pursuit of justice. His law firm has represented both lenders and borrowers in financial legal matters including bankruptcy, foreclosures and lender liability. The firm also educates borrowers about credit and assists with the restoration of their credit worthiness.
Copyright Hagen & Hagen, P.A.
More information about Hagen & Hagen, P.A.
View all articles published by Hagen & Hagen, P.A.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
