New Foreclosure Wave? Can tweaking mediation plan really help?
Is a new wave of foreclosures coming to Florida? A ‘workgroup’ that reports to the Florida Supreme Court is predicting a wave of new cases and perhaps engaging in some wishful thinking.
“These cases will continue to languish if additional resources are not provided to the courts. RealtyTrac, which compiles foreclosure data nationwide, reports that another wave of foreclosure filings is imminent in Florida. Circuit courts likely will face a new surge of cases in 2012, which will further exacerbate the backlog and further delay finality,” the workgroup’s report said.” http://www.floridabar.org/DIVCOM/JN/jnnews01.nsf/8c9f13012b96736985256aa900624829/ae000dd60ef684b4852579410047cb9a!OpenDocument
The workgroup went on to recommend changes in the foreclosure mediation program only rolled out across the state in just the last year or so.
At least the Supreme Court’s ‘workgroup’ recognizes there are problems with the existing mediation process. They make a variety of suggestions, which you can review at the link above. Unfortunately, it’s my experience that this mediation program needs considerably more than tweaking. It has not been helpful for many borrowers, especially when the lenders’ representatives don’t really have full authority or are only willing to discuss ‘home retention’ alternatives (shorthand for loan modification). They demand all kinds of financial information from borrowers well in advance,* but often only provide incomplete information themselves, and that the day or so before the mediation. It is discouraging that a mediation process which started out with such high hopes on all sides has proved so singularly unhelpful.
It is understandable and praiseworthy that the Supreme Court’s ‘work group’ wants to use mediation to help resolve cases. I’m just not confident the improvements they suggest will make much impact. It is true that a surge of new cases is very likely to overwhelm the courts. It therefore remains critical for foreclosure defense attorneys to neverthless insist that all court rules and rules of evidence are followed for the benefit of the homeowners. Courts cannot cut corners just because they need to move a lot of cases off their docket.
I leave you with this thought by Benjamin Franklin:
“By failing to prepare, you are preparing to fail. “
* I continue to STRONGLY CAUTION my clients to think carefully before participating in this process and handing over to lenders and debt collectors a road map to their assets. While it may be mandatory for this particular specialized foreclosure mediation process, if you opt out, the court will not compel a homeowner to turn over what is really ‘pre-judgment collection discovery. ‘ Usually, a creditor can only get that kind of information AFTER they have obtained a PERSONAL judgment, not just a foreclosure judgment.
