Thursday, May 26, 2011
State Mediation Program Unsuccessful So Far
The foreclosure mediation program implemented by the Florida Supreme Court in late 2009 has, unfortunately, been a resounding failure. While mediation can provide a favorable outcome for both borrower and lender, lenders are finding themselves unable to reach a compromise in situations where borrowers are not only unable to pay their original mortgage payments, but are actually unable to pay anything at all. While critics point out that there have only been a few hundred successful settlements since the mediation program began, supporters point out that even a relatively low number of successful mediation's is helping unclog the courts and providing economic relief for the successful borrowers and lenders. That, they argue, makes the program worthwhile, even if it has not yet reached widespread success. Experts suggest that the biggest roadblock to successful mediation thus far has been unresponsiveness on the part of borrowers, who may, whether out of confusion or fear of being swindled, have largely been ignoring the attempts to mediate. Perhaps a more uniform program would help borrowers understand why they are being contacted about mediation and what benefits mediation can provide, thereby increasing the rate of success of the mediation program.