Due to the substantial increase in mortgage foreclosure case filings in Miami-Dade County, the Eleventh Judicial Circuit Court has ordered the creation and implementation of the Residential Mortgage Foreclosure Mediation Program (RMFM Program) for all residential mortgage foreclosure actions. The new court-mandated mediation program replaced the CHAMP program as of March 29, 2010, and it is aimed at providing a forum for both lenders and homeowners to discuss alternatives to foreclosure. Unless a homeowner decides not to participate in the program, specific conditions and requirements must be complied with before a lender can apply for a default judgment, a summary judgment hearing, or a final hearing for foreclosure.
So what does the RMFM Program really mean for homeowners? First, lenders must now seriously consider alternatives to foreclosure, such as loan modifications, short sales, and deed in lieu of foreclosure. Second, homeowners are entitled to ask a lender to make certain disclosures, such as:
- Documentary evidence that the lender is the owner and holder in due course of the note and mortgage.
- A history showing the application of all payments by the borrower during the life of the loan.
- A statement of the lender's position on the present net value of the mortgage loan.
- The most current appraisal of the property available to the lender.
All of the costs incurred by the program are paid for by the lender. In order to participate, a homeowner must meet with an approved mortgage foreclosure counselor, and provide the Program Manager (the Collins Center for Public Policy, Inc.) various financial disclosures prior to mediation, such as their monthly income and expenses. At mediation, the Program Manager will preside over the meeting, facilitating the possibility of a settlement.
This article does not create an attorney-client relationship. Any information provided is general information only and does not constitute, nor should it be construed as, legal advice.
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