RMFM Rebooted: Orange County Foreclosure Mediation Program

The so-called RMFM has just become the OCFM or Orange County Foreclosure Mediation Program, administered by the Orange County Bar Association (OCBA). With the originally mandated statewide program abruptly halted by Chief Justice Charles Canady of the Supreme Court of Florida, Ninth Circuit Chief Judge Belvin Perry, Jr. took initiative and by Administrative Order 2012-06, created a new residential mortgage foreclosure program with the OCBA as Program Manager. The stakeholders, including lenders and consumer advocates, committed to new features of the program, such as that the overall cost has been reduced to $500 per case and homeowners pay $250 to participate. There was no fee previously and the hope is to attract serious borrowers who, by having skin in the game, are committed to the process and staying in their homes. Homeowners can first attend free seminars on the process and perceived benefits of participating. There will also be collaboration with the Legal Aid Society providing personal, specific education for borrowers and pre-screening for lenders. Mediators will be drawn exclusively from Orange, Osceola and Seminole counties, but now only receive $150 per session-- half the previous rate. The program mediators will be assigned by computer and there is no minimum number guaranteed. The entire process has been expedited to operate within 100 days. For more information, see: http://ninja9.org/adminorders/orders/2012-06%20-%20residential%20foreclosure%20mediation%20procedures%20orange%20county.pdf and http://www.orangecountybar.org/foreclosure_mediation

Why did things go better out West?

Just as Florida ended its mandatory foreclosure mediation program, the Justice Department praised Nevada's foreclosure mediation program in a recent report saying it provides a road map for other states to follow in addressing the continuing fallout from the housing crisis. Nevada, much like Florida, has some of the highest numbers of foreclosure filings in the country. In the report, data recorded by program staffers shows that since that program started, 13,813 Nevada homeowners participated. Of those, nearly 3,900 homeowners obtained loan modifications that allowed them to stay in their homes. More than 2,000 others agreed to foreclosure alternatives, such as short sales. Much like Florida, remaining participants of failed mediations blamed lender required documents or representatives without authority to take action. A drop-off in filings following robo-signing scandals may have skewed success, as well. However, the Justice Department apparently evaluated how states addressed the foreclosure crisis and singled out Nevada's program for developing policies and procedures other states could implement. See article - http://bit.ly/wg9N7O

Starting tomorrow in Seminole: 300 Foreclosures in 3 days

Tuesday, Seminole County's Chief Circuit Judge says he'll hear three days of foreclosures at 30 seconds a case, though last year Judge Dickey processed about 125 foreclosure cases an hour, many of which were dismissed or continued. For a time last year, the State of Florida paid retired senior judges to hear foreclosure cases to clear dockets. Since the program's demise, dockets are clogged again, especially with the Supreme Court of Florida also dropping its mandate last month for foreclosure mediation after reports that it was ineffective. Unfortunately, according to the Office of the State Court Administrator, almost seventy percent of cases mediated from March 2010 to March 2011 did not result in any agreement between the borrower and the lender. However, a U.S. Justice Department report recently concluded that mediation can resolve more cases-- if the programs are structured effectively. Without a government driven program for banks and homeowners to mediate foreclosures, it's now up to individual judicial circuits to decide about foreclosure mediations. Some circuits, such as Volusia, have no plans to ensure that banks offer mediation. Others, such as Seminole and likely Orange, will continue mandatory mediation. See article: http://thesent.nl/zQcPz6