Bankruptcy Mandatory Mortgage Mediation: Success Rate # 2

The new program for mandatory mediation program for South Florida bankruptcies obviously does not yet have any results since the program only became effective on April 1,  2013.  So what basis do we have to estimate a success rate for a Fort Lauderdale mortgage modification in a bankruptcy mediation?

The Bankruptcy Court for the Middle District of Florida previously adopted a mandatory mortgage mediation program.   The success rate of the mandatory bankruptcy mediation program is reported to be at 76%, unlike the state court foreclosure mediation rate of under 5%.

I should clarify the definition of success.  The 76% figure is based on lenders providing a proposed modified mortgage to the homeowner.   It must be understood that many individuals might be unable or unwilling to accept the proposal made by the lender.  But just getting to the point of receiving a firm offer of a modification within a reasonable time would be a great accomplish for countless homeowners.

Reasons for the higherbankruptcy  success will be discussed in future posts.  And the local program should have even better results.  Why?  See installment #6 when it posts.  The advantages of this system should be considered when deciding whether to file a Ft. Lauderdale bankruptcy.

 

 



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