Broward County Foreclosure Mediation Program.
Broward County Florida has mediation programs that people can use for dealing with disputes, including to help with a foreclosure. The goal is to ensure that both homeowners and their lenders have a forum to communicate face to face. The 17th Judicial Circuit and free pro-bono lawyers in Broward County (among other resources) arrange the process. Learn more on how Broward County mediation can help prevent a foreclosure.
The foreclosure mediation program is the result of a multiple studies down over the years, including study that was conducted by the Florida Supreme Court as well as the Broward County Housing Finance Division. Studies show that lender-homeowner mediation is one of the most effect ways to lower the number of foreclosure cases in the state. A neutral, thrid party mediator will help in the process to try to find a solution that works for both parties as the goal for both parties is to get the mortgage payment back on track.
How does the Broward County Foreclosure Mediation Program work?
The goal is that the mortgage lender, meeting together with the homeowner at a neutral location, can sit down with a neutral third party, that being the mediator. The mortgage holder / lender as well as homeowner will discuss all options and to ideally work out the loan modification or some type of solution, along with a payment schedule that ensures long term success.
The details include the following. The mediation program will work like this. There is no guarantee each case will come to a resolution. Mediation can also be combined with financial help from Broward County organizations.
- Once a foreclosure case is filed by the lender, the case will be referred to a housing counselor or a case manager from the company handling the mediation program.
- That non-profit company is part of the American Arbitration Association.
- During the process the homeowner will also be notified and, if the borrower does agree to a free mediation session, the homeowner will need to undergo a credit counseling sessions.
- As that is ongoing, the bank and the homeowner will begin the process of trying to work out a resolution, which could mean reducing the interest rate, a loan modification, or reducing principal, or even letting go of the home if there is no hope of finding a way to save the homeowner.
The mediation process will also in effect allow the family to stay in the home longer, as the process from start to finish is expected to take weeks if not months. The cost of the foreclosure mediation sessions will be paid directly by the bank that files the foreclosure action and their is no cost to the borrower.
Mediation in Broward County can be combined with other legal aid or forms of mortgage help. Local Broward County Housing counselors and foreclosure defense attorney believe that the mediation program will help homeowners that are facing foreclosure. However much of that depends on the banks and lenders, and this is when a free volunteer lawyer consultation in FL can also be helpful. The Broward County Housing Finance Division can also help with the process, and they are at 954-764-4357.
Can lender-homeowner mediation really stop a foreclosure in Broward County
While results of course will vary, the data shows it can be very helpful. The Senior Vice President of American Arbitration Association has said that they have seen success rates of 50-60% when lenders and homeowners get together into the same room and communicate to try to work out a solution to a foreclosure. This is based on nationwide data. And a formal mediation program and structure should only help to increase that rate.
Many believe that as a result of mediation, lenders are more likely to do things like reduce the interest rate, change the principal, and address large past due balances that may be on homeowners mortgages. So if you are facing a foreclosure, the local 17th Judicial Circuit information line is at (954) 831-6077, and they can help people arrange mediation. Or contact a resource referenced above.
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