Florida Foreclosure Mediation for Homestead PropertyIn late 2009, the Florida Supreme Court created a mandatory Foreclosure Mediation program for homeowners facing foreclosure lawsuits, although the program only applies to homestead property, which is typically your primary residence.Foreclosure Mediation before the foreclosure lawsuit begins is a great opportunity and likely your best chance to avoid losing your home. At mediation, you'll have a chance to meet directly with the lender to explain your circumstances and plan for resolution of the foreclosure lawsuit together with input from an experienced mediator who can also help keep things calm and professional. How Foreclosure Mediation WorksAs part of the Florida Foreclosure Mediation Program, banks must file a Request for Mediation at the same time they file a foreclosure lawsuit. The court mediation office then contacts the homeowner to schedule mediation which must be done no earlier than 60 days and no later than 120 days from the day the lawsuit is filed with the court.In practice, the mediation will likely occur much later than 120 days due to the backlog of foreclosure lawsuits in the Florida courts. In addition, you may also be forgotten because of the same backlog and never actually receive notice from the mediation office. Whether its done intentionally or not, don't let your case fall through the cracks as its your home and ultimately your job to protect it. As a result, if you don't hear from the court mediation office within a month or two of receiving your foreclosure lawsuit, contact them directly to at least schedule the mediation within the 120 days so the lender can't use the missed deadline to avoid attending. Once the mediation is scheduled, you can attend alone or with an attorney. The bank will always have its attorney present so try to retain a qualified lawyer if you can afford it to "fight fire with fire." If you can't afford it, don't worry. Mediation is very informal and you'll have the chance to present your case to both the lender and mediator as well as meeting with the mediator privately for confidential discussions. What You're Trying to AccomplishRemember to identify what you're trying to accomplish at mediation and plan accordingly. If you're defending the foreclosure lawsuit and possibly counter-suing because of defective title or other legal issues, prepare your case so you can convince the lender and mediator that you'll win at trial. Bring the documents that support your case and prepare a brief summary for the mediator which outlines your argument. Although the mediation is non-binding -- meaning that both parties have to agree unlike trial where the court decides -- making a strong case at mediation will likely result in settlement.If you're defending a foreclosure lawsuit, your main goal is to get the foreclosure lawsuit dismissed "with prejudice", meaning it can't be re-filed by the lender. However, you may also be entitled to rescission of the loan documents in which you own the property free and clear of that mortgage and/or additional damages as a result of the lenders actions. Be sure to read our section on "Foreclosure Lawsuits" for more information and consult with an experienced attorney whenever possible. If you're in the foreclosure lawsuit as part of a Strategic Default to help get your loan modified or short sale approval, the same rules apply. Be prepared to convince everyone in the room that your mortgage is underwater and by how much, and that your financial circumstances justify help. Be sure to read our sections on "Foreclosure Short Sale" and "Foreclosure Loan Modification" for more information. If all else fails, remember that a "Deed in Lieu of Foreclosure" is a much better solution than a long and stressful foreclosure lawsuit for both you and the lender so be prepared for that foreclosure alternative as a back up to your primary plan. Read our section on "Deed in Lieu of Foreclosure" and make sure the lender agrees to waive any resulting deficiency balance and agrees not to pursue a deficiency judgment if you decide on this option.
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