• 04
  • March

A recent article published by the South Florida Sun-Sentinel discusses how few foreclosure cases referred to mediation in Florida are actually ending in mediation. The Florida Supreme Court did an analysis and found that 6 percent of foreclosure cases referred to mediation in Florida have actually ended in a written settlement for homeowners.

According to the Sun-Sentinel, a big part of the problem is that lenders are failing to bring the necessary paperwork to mediation sessions or are bringing faulty paperwork. Homeowners have the right to see certain documents in order to have the information necessary to try to save their home from foreclosure.

The Florida Supreme Court ruled in 2009 that residential homesteaded properties must go through foreclosure mediation and ordered banks to provide borrowers with a plaintiff's disclosure before mediation if the homeowner requests one.

The plaintiff's disclosure can include a payment history, a current appraisal of the property and the estimate by the bank of the present net value of the mortgage. The last thing a plaintiff's disclosure could include has been the most difficult for lenders to produce: documented evidence that the bank owns and holds the mortgage note.

Lenders say that the reason why the paperwork has been hard to provide is because they are swamped with backlogged foreclosure cases.


Foreclosure crisis: Lenders holding back critical information at mediations (Sun Sentinel)