Foreclosures in Florida And The Mediation Process

The number of foreclosures in Florida are record-breaking. As one of the US states most hard hit by the current economic downturn, Florida ranks as the third highest mortgage payment delinquent state with currently 30,000 properties facing foreclosure. Homeowners facing foreclosure can still salvage their property through the mediation process.

Mediation Guidelines for Foreclosures in Florida

Although the foreclosure mediation process has been around for many years in Florida, it was not widely publicized to homeowners until recently. On December 28, 2009, the Supreme Court of Florida has issued an order which will require foreclosures to go through a Managed Mediation Process. Mediation enables troubled homeowners to meet with their lenders at the bargaining table to renegotiate the terms in their mortgage and address other issues and circumstances surrounding the borrower’s default.

Exceptions to the mandatory foreclosure mediation will be granted if the borrower and the lender reach an agreement to forego mediation, mediation was previously unsuccessful, or the homeowner cannot be located.

Among the Mediation guidelines are:

  • The house in default must be the homeowner’s primary place of residence
  • The loan must have originated under the federal truth-in-lending regulations.
  • Sessions must be scheduled by mediation managers no less than 60 days and no more than 120 days after filing of the foreclosure case.
  • Lenders are required to pay a $750 fee up front, which is recoverable in the final judgment if mediation fails and the suit proceeds to foreclosure
Florida is one of the states very much badly hit by the economic downturn

Photo Courtesy of roger4336 via Flickr

Why Would You Be Interested in Foreclosures in Florida?

Indeed, who would not want to live in Sunshine State? Recession or no recession, Florida has drawn investors for many reasons: a year round warm climate; a vast expanse of coastal areas for leisure; vibrant tourism industry; business-friendly state policies; rapid appreciation of real estate values. The world famous resorts like Sea World, Universal Studios and Disneyland are something every child would like to visit any day they choose as if these were their next-door neighbors. Amusement-park lovers are also ecstatic to have the newly opened Harry Potter theme park and see Hogwarts come to life.

Florida is also home to some of the top schools and universities in the nation, making social life for both high school and college students more fun and exciting. Sports enthusiasts will be guaranteed a hundred percent fun with Florida, being home to two of NBA’s teams, Orlando Magic and Miami Heat.

If you have long been longing to move to Florida, foreclosures in Florida may open this opportunity for you. It is only a matter of time before foreclosures slow down, mortgage rates go down, and the price value for real estate goes back up as news reports are showing Florida is starting to recover from the economic crisis.

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