Florida Supreme Court reconsidering foreclosure mediation program
Palm Beach Post Staff Writer
Updated: 6:13 p.m. Monday, Sept. 26, 2011
Posted: 6:11 p.m. Monday, Sept. 26, 2011
The Florida Supreme Court ordered a review Monday of its landmark foreclosure mediation program which has shown limited success in finding alternatives for struggling homeowners.
The mandatory program for all homesteaded properties was ordered by the court in Dec. 2009 in an effort to reduce judicial caseloads and help borrowers avoid foreclosure with options that can include a loan modification, deed-in-lieu of foreclosure or a short sale.
Statewide, 3.6 percent of all cases referred to mediation in a yearlong period beginning in March 2010 ended in a written agreement between the lender and homeowner. In Palm Beach County, 1.6 percent of the 4,632 referrals made ended in a written agreement.
In Monday's administrative order, the Supreme Court appointed five judges and one court administrator to evaluate the success of the program and recommend whether it should be continued, changed or eliminated.
Judge Burton Conner, who sits on the 4th District Court of Appeal and served on a statewide foreclosure task force that recommended mediation, was appointed to the committee.
Conner said last week that the program has experienced growing pains, but that he believes banks will increasingly see the benefit of going to mediation.
"There has been institutional resistance because it is such a new tool," Conner said. "With anything new it takes a while to figure out how it works and how you can benefit."
The program has had more success if only homeowners choosing to participate are considered. Under that benchmark there was a 25 percent success rate statewide and 18 percent in Palm Beach County.
Proponents also argue that results gathered by the state don't include agreements that occur outside of mediation.
The committee has until Oct. 21 to submit its evaluation to the court. Public comments may be submitted to the committee through Oct. 3 at www.floridasupremecourt.org.
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