Owners of Foreclosed Homes for Sale in Miami Not Keen on Mediation

by Peter Vernon on cities

Almost 50% of the total number of owners of foreclosed homes for sale in Miami has not taken part in the state-sponsored mediation program. Data for the Miami-Dade metro in Florida showed that almost half of the more than 24,000 foreclosure cases in the city for the current year had no participation in the program.

The Supreme Court of Florida has issued an order on January 2010 to judges in the state to require all foreclosure-related cases to undergo mediation before any step is taken to move the case forward. The order was reportedly aimed at lowering the number of foreclosed properties in the area, including Bank of America homes for sale.

The mediation program involves providing counseling services to homeowners and seeking a borrower-lender agreement that will help lower the number of Florida foreclosed homes by helping owners keep their properties. The program is also designed to benefit the lender since preventing foreclosure will mean lower costs and less time on the courts.

According to the officials of the Mortgage Foreclosure Mediation Program, the process is offered for free to owners of foreclosed homes for sale in Miami. It focuses on finding an alternative to foreclosure, such as short sale, deed in lieu and loan modification. The program is coordinated in Miami-Dade by the nonprofit organization Collins Center for Public Policy.

According to Collins, the program is meant for cases involving bank foreclosed homes for sale or those properties that are already under foreclosure and not those homes that are threatened by foreclosure. Under the mediation initiative, owners of foreclosed properties can avail of the services for free, but lenders are required to pay a mediation charge of $750.

Since May 2009, around 5,700 mediation negotiations have been completed in Miami-Dade, with more than 1,000 still scheduled for the coming months of 2010. The program has been in place in the metro area even before it was made mandatory statewide last January 2010.

Since then, Collins has handled over 8,000 cases statewide with the help of 600 mediators. Despite these efforts, analysts have revealed that foreclosed homes for sale in Miami remain as some of the highest among all metropolitan areas in the U.S.

disclaimer