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Apr 23, 2009 9:40 pm US/Eastern
Foreclosure Mediation May Keep You Out Of Court
MIAMI (CBS4) ―
The 11th Circuit Court of Florida announced a new mediation program that helps homeowners avoid foreclosure without having to deal with lengthy litigation in court.
In 2008 companies filed 56,000 foreclosures in Miami-Dade courts alone. It has clogged up the system and yielded little help to the massive foreclosure problem.
In order to better deal with the back-up system, the 11th Judicial Circuit Court of Florida announced Thursday the new program for homeowners. Organizers say the program should streamline the process and provide a structured forum for lenders and homeowners to find a resolution before following through with lengthy litigation.
"What we're looking for here is a long term solution, not band aids," said Judge Jennifer D. Bailey.
Bailey added it will give the courts "the ability to get back down to a manageable case load and make sure that the access to justice is not compromised of a tsunami of foreclosure cases."
The mediation program kicks off May 1 and will mandatory for every homeowner facing legal foreclosure action after that date.
The courts are partnering with the non-profit agency Collins Center for Public Policy to provide the service. The agency will ensure that the homeowner and lender sit down with a trained mediator with the goal of striking a financial compromise so that families can remain in their homes responsibly.
"This is not the mom and pop mediation where you've got 1 or 2 cases going to an independent mediator every now and then," according to Rod Petrey, president of Collins Center for Public Policy. "Here we've got thousands and they need to be managed."
Homeowners like Betty Rodriguez who risk losing their homes are hopeful about the mediation program.
"I think its impressive and I thinks its something that makes you feel protected because now the law is behind you."
Rodriguez feels it's important to bring all parties to the table and create a trustworthy line of communication between banks and homeowners,
"I'm just trying to see how to work it out. I'm not running away- I want to find a solution."
*There is a $750.00 fee for those who use the program. The fee will be paid by the lender up front and the homeowner will pay the fee back after a financial agreement for the mortgage is reached.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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