The 19th Circuit has joined the list of courts requiring mediation in owner-occupied properties in foreclosure cases.
Chief Judge William Roby signed an administrative order last month requiring the prehearing mediation for residential properties in foreclosure. The circuit has faced the fastest growth of foreclosures in recent years, with the number of filings rising more that 1,400 percent.
And the 12th Circuit, which set up a mediation program earlier, recently held a training program for interested lawyers, with more than 80 turning out.
The 19th Circuit program requires the party filing for foreclosure to designate whether the property is owner-occupied. If so, the case will be referred to mediation through the Collins Center at Florida State University and the mortgage-holder will pay a $750 fee to the center to cover the cost of mediation.
The mortgage-holder or a representative empowered to reach a settlement must attend the mediation in person, as must the defendant or a representative. The lender can be sanctioned or have the foreclosure suit dismissed without prejudice for failing to attend the mediation, while the case can go straight to final hearing if the defendant fails to attend.
The mediator must report the result of the mediation to the court within 10 days of the mediation. No notice for trial, motion for default final judgment, or motion for summary judgment can be filed until the mediation has been held.
Roby’s order also provides that, “Mortgage lenders, whether private individuals, commercial institutions, or mortgage servicing companies, are encouraged to use any form of alternative dispute resolution, including mediation, before filing a mortgage foreclosure lawsuit with the Clerk of the Court.”
In the 12th Circuit, more than 80 attorneys attended a February 23 session at the Judge Lynn Silvertooth Judicial Center. Chief Circuit Judge Lee Haworth, who has testified at the Legislature about creating a statewide foreclosure mediation law, and attorney Anne L. Weintraub talked about the Homestead Conciliation Program created by Haworth to address foreclosure problems there.
The participating attorneys agreed to a limited representation of three legal aid-qualified borrowers at no charge at a conciliation conference.
Several circuits have set up mediation and other programs to help homeowners facing foreclosure. That has prompted a group of private attorneys and legal service organization to petition the Supreme Court to require mediation in all foreclosures of owner-occupied residences.
Aside from the court-ordered mediation programs, The Florida Bar and several sections are continuing to operate the Florida Attorneys Saving Homes foreclosure prevention project to help distressed homeowners before a foreclosure action is filed.
Training for volunteer lawyers can be found at http://floridalegal.org/foreclosure/training/index.htm.
— Courtesy Florida Bar News