Florida passed a law requiring banks to allow homeowners to mediate to try to resolve their delinquent mortgages without having to go through the already overcrowded courts. Homeowners involved in a foreclosure action meet with their lender and the mediator, in a neutral location to try to work out options to avoid foreclosure. At mediation, the homeowner’s current financial situation is reviewed and the homeowner is given a chance to explain why they are behind on their payments. The homeowner is encouraged to hire an attorney to attend the mediation as the Lender Representative and Lender’s counsel will be present.
Although the statewide Supreme Court mandated mediation was cancelled as of December 2011, your local circuit court may still have a mediation requirement. Additionally, many foreclosures are still be resolved via mediation.