January 15, 2010 - The Florida Bar News reports that the Florida Supreme Court approved a managed mediation process for foreclosures. This action is intended to help alleviate the burden of a continued increase in foreclosure cases. The program, detailed by the Task Force on Residential Mortgage Foreclosure Cases, identified a lack of communication between lenders and borrowers as a crucial problem. Implementation of the mediation process will force better communication. It will also provide opportunities for homeowners to stay in homes while lenders are paid back on their loans. All foreclosure cases currently residing in the courts involving residential homestead property will be referred to mediation through qualified providers and Supreme Court certified circuit civil court mediators. The Court agreed with The Task Force majority' recommendation for the costs of mediation to be paid by lenders. The total fee for mananged mediation may not exceed $750.00. This fee will be refunded if a borrower chooses not to participate. Borrowers may opt out of mediation by declining to participate upon being contacted by the mediation manager or by not completing pre-mediation documents for foreclosure counseling and financial disclsoures.
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