Foreclosure mediation

One of the solutions to the onslaught of foreclosure lawsuits has been requiring mediation between the bank and the homeowner.  Finally, it looks like there is some momentum on this front:

“To sandbag the flood of foreclosures pouring into the state’s underfunded court system, the Florida Supreme Court announced the formation of a statewide task force on Monday that will look for solutions to the docket backlog while ensuring borrowers and lenders are treated fairly.”

This is a win-win for everyone involved.  Homeowners have an opportunity with a neutral third party to discuss a resolution of the matter.  The lenders/banks have the opportunity to have the case settled, which saves litigation costs and avoids the real possibility of another REO.  Hopefully, the plan will require homeowners to provide the bank/lender with financials prior to the mediation (for example, what is required pursuant to the new Obama plan), so there is transparency and efficiency.

Unfortunately, there is some poo-pooing from the lenders and their attorneys:

“Marc Ben Ezra, a Fort Lauderdale attorney who handles foreclosures for lenders, said there is a huge need for uniform statewide rules. But he said forced mediation is not the answer.”

Mr. Ben-Ezra claims that mediation will raise costs and delay the process.  I dispute the cost-raise issue and believe the whole purpose is to slow down the process.  If some time is taken to look at the loan and the finances of the homeowner, something can be worked out.  We are, afterall, talking about the roof over someone’s head here.  A little delay can’t hurt that much, can it?


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