How did the Collins Center get involved?
If a foreclosure action was filed against a loan before December 2011, the mediation manager in that area was notified to begin the mediation process. It was part of a Florida Supreme Court administrative order executed in 2009 that required lenders to refer residential foreclosure cases involving homesteaded properties to the circuit court’s mediation program manager in an attempt to resolve the case in mediation before going to court for final judgment. That court order was lifted late in 2011 and automatic notifications are no longer occurring after foreclosure papers are filed. However, a judge can still refer a case to mediation or the parties can voluntarily enter the mediation program. Additionally, the Collins Center has a contract with Fannie Mae to provide mediation services for Florida homeowners with loans backed by Fannie Mae. When a loan backed by Fannie Mae becomes 65 days delinquent, the Collins Center is notified.Is there a fee to participate in the Mortgage Mediation Program?
The lender or loan servicing agent pays the managed mediation fee at the time the foreclosure action is filed with the court. There is no upfront fee required of the borrower to participate in the program. However, if the case is not resolved through the mediation process, all or part of the fee may be assessed against the borrower, at the presiding judge’s discretion, if the case proceeds to a final judgment.What is mediation?
In mediation, a neutral third party (mediator) helps the homeowner and lender reach a fair, voluntary, negotiated agreement. The mediator does not decide who is right or wrong.Why should I bother to mediate my mortgage problem?
Many difficulties with mortgages, either before suit is filed (such as when an ARM reset is approaching or when a homeowner is slightly behind in payments) or while a foreclosure case is pending, can be resolved through reasonable discussions. An experienced mediator can help the parties find a creative solution. Because mortgage lenders don’t want to own houses, they are generally willing to talk with a borrower about reasonable, practical solutions to bring the mortgage current. Mediation, with the chance to talk privately with the mediator, has a better opportunity to reach a solution than a possibly tense or difficult one-on-one negotiation.What is the difference between the pre-file Fannie Mae Mediation Program and the Residential Mortgage Foreclosure Mediation Program (RMFM Program)?
A Fannie Mae-backed loan is at least 65 days delinquent, but the bank has not filed the foreclosure suit with the court. There is still time to avoid foreclosure by reaching a resolution with the lender. A home that is already in foreclosure falls into the RMFM Program.The pre-file Fannie Mae Mediation Program works exclusively with Fannie Mae-backed loans that are at least 65 days delinquent but that are not yet the subject of a foreclosure filing by the lender. This means there is still time to reach a resolution through mediation with the lender in an effort avoid ever ending up in foreclosure. Loans that are already the subject of a foreclsoure filing in court are eligible for the RMFM Program.
How do I know if I have a Fannie Mae-backed loan?
Visit this website http://www.fanniemae.com/loanlookup/ and put in your address to see if Fannie Mae owns your loan.Who are the mediators?
The independent foreclosure mediators are Supreme Court-certified and trained in mediation and foreclosure law.Will the mediator issue a decision in my case?
No. All the mediator can do is help the parties look at the dispute more objectively, discuss options for a workout of the mortgage, listen to each side privately, and help the participants find a solution. A mediator makes no decision, judgment or recommendation on the outcome of the mortgage dispute.Do I need a lawyer to participate in the Mortgage Foreclosure Mediation Program?
No, you do not have to be represented by an attorney.Do all borrowers who signed the mortgage need to attend the mediation session?
Yes, all borrowers must be present at the mediation session. For example, if a husband and wife signed the mortgage, then both will need to be present for the mediation. If one party cannot attend, the borrower who is attending should bring a completed Power of Attorney form.Is the mediation confidential?
Yes, any discussions in the mediation session are confidential.What do I bring to the mediation session?
- Completed Financial Disclosure Form - Every borrower who agrees to participate in the Collins Center's Mortgage Foreclosure Mediation Program is required to complete a Financial Disclosure form. In the 19th circuit, this form must be completed with a financial counselor to comply with program procedures.
- Credit Report
- Previous Year's Tax Returns
- Proof of Income
- Most Recent Bank Statement
- Current Utility Bill(s) for Property in Foreclosure
- Any other information that may be helpful.
