Since its inception, Florida's state foreclosure mediation program has been met with mixed reviews. Many complain that it has not produced the desired results because it doesn't encourage honest participation from any of the parties.
But it was a step in the right direction, and federal courts have taken notice. Using Florida's state program as a guide, Federal courts in Orlando started a program that helps people remain in their homes. Unlike the Florida state program, the federal program has been very successful.
Though only a few hundred cases have gone through the program, 90% of those who have used it have been approved for mortgage modifications. The program is now moving to Manatee and Sarasota counties, and has plans to move to Jacksonville in the near future.
One drawback is that, in order to participate in the federal program, homeowners must file Chapter 13 bankruptcy first. Not everyone qualifies for Chapter 13 bankruptcy; not to mention the program can be complicated. Nevertheless, you should speak with a Florida Foreclosure Defense Attorney or a Jacksonville Bankruptcy Attorney if you're interested.
This program should benefit both homeowners and mortgage lenders. Lenders have been relatively slow in initiating foreclosures lately because they do not really have much incentive to repossess a home: foreclosure basically means the lender is taking possession of the home and then losing more money on it in a foreclosure sale. The program encourages lenders to renegotiate with the homeowner so the homeowner can remain in the house and the lender can recover some of its losses.
Though the program has not yet moved into Jacksonville, it will hopefully be a big help for Florida's housing market that has one of the highest foreclosure rates in the nation. Keep reading the blog for more updates, or contact a Jacksonville Bankruptcy Attorney or Florida Foreclosure Defense Attorney to learn more about the program once it gets implemented.
