Florida Foreclosures: Good News for Homeowners — Court Requires Mediation before Foreclosure

According to the 12/29/09 online edition of the Miami Herald, foreclosing on a homeowner just got a little more complicated and costly for lenders, ie:

Florida’s troubled homeowners and their lenders will increasingly meet at the bargaining table under a state supreme court order issued today that aims to reduce a foreclosure overload. . . . [a] statewide program . . .  requires mediation on all homesteaded properties before a foreclosure hearing is held.

What the New Florida Foreclosure Law Means for Homeowners

Basically that they get another shot at the apple, for it ensures that they will a chance to meet with their lender to discuss whether a loan modification or short sale is an option, instead of the lender moving forward with a foreclosure.

Other Particulars of this New Florida Foreclosure Law

Lenders have to pay the mediation fees — which can run as high as $750.

Homeowners can refuse mediation if they wish, or work out other options with their lender, but every residential homesteaded property in foreclosure will be referred to this process as a matter of course.

Lawmakers hoping this law will help reduce the thousands of foreclosure cases clogging the Florida system, a situation that’s been called ”horrifying” by Florida’s Task Force on Residential Mortgage Foreclosure Cases.

Learn more about this new Florida Foreclosure Law.

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Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.