A Beginner’s Guide To Foreclosure Mediation In Escambia County, FL

In this article, you will discover:

• The purpose of foreclosure mediations and how to submit a motion to begin the process.
• What to expect during the process and how you can be protected from foreclosure for the duration of your mediation.
• How an attorney can help you prepare to face bank representatives during mediation.

What Is Foreclosure Mediation And How Does It Work In Florida?

Foreclosure mediation is the process by which lenders and borrowers can resolve mortgage issues without the risk of foreclosure. During the litigation process, either party can request mediation, though the borrower typically makes the request. The goal in requesting a foreclosure mediation is typically to be able to sit down with a singular human representative rather than dealing with the bank or financial institution as a whole.

Mediation is a non-binding, voluntary process where a neutral third party helps the borrower and lender reach an agreement, resolving mortgage issues without foreclosure. This can include loan modifications and rate adjustments in situations where the borrower may need to renegotiate the terms of the loan. I often see situations where an event has occurred that causes a default or alleged default on the borrower’s end, requiring mediation to reach a new agreement around the loan.

Mediation is a common process, as it can be difficult for borrowers to achieve a loan modification without a designated representative to discuss their terms with. When dealing with large bureaucracies like banks and mortgage companies, reaching an agreement on your loan modification can be quite difficult.

For this reason, having an attorney at your side can be incredibly helpful, ensuring communications run smoothly, helping you understand the process, and standing up for your rights and interests throughout.

How Can I Begin The Process Of Applying For Foreclosure Mediation?

Generally, your lawyer will simply put in a motion or a request for a foreclosure mediation. If the lending and borrowing parties have a dispute with each other, mediation is beneficial for reaching a resolution without further court intervention.

A judge may also advocate for foreclosure mediation instead of immediately heading to trial. A motion for mediation is typically the preferred method of resolution among all parties involved, especially when unnecessary litigation can be avoided.

What Can I Expect During A Foreclosure Mediation Session In Escambia County?

The primary goal of mediation is to have a human point of contact from the bank that you can reliably work with to reach an agreement. In other words, mediation is not always necessary if you have responsive servicing agents at your bank with whom you can work. Unfortunately, this is commonly not the case, as loans are generally serviced by third parties appointed by the bank more so than the bank itself.

The third party entities you deal with regarding your loan modifications are often not prepared to handle any requests outside of your standard performing loan. This can cause a great degree of difficulty in dealing with these loan servicers, sometimes leading to a motion for mediation so that you can guarantee that your case is being seen and heard by the appropriate parties.

If you do not receive a formal acceptance or rejection for your loan, this can be used to protect you from the continuation of the foreclosure until the mediation process is completed. Mediation usually serves the purpose of buying you the time necessary to maintain your property while you negotiate with someone to settle your case.

Dealing with the runaround of third parties, ambiguous websites, and bureaucratic loan services can make it extremely difficult to receive clear answers on your settlement.  Mediation allows you to speak with someone who has the authority to give you a yes or no answer regarding your loan modification requests.

Attorney Jeremy Dubyak is a seasoned lawyer based in Escambia County, FL who has helped countless clients just like you navigate the intricacies of foreclosure mediation law. With 12 years of experience proudly representing clients in Florida, Jeremy is prepared to assist you through the process of your foreclosure mediation so that you can reach an agreeable solution with your lender.

Still have questions? Ready to get started? Contact Dubyak Law Firm, P.A. at (850) 266-7822 today to schedule an initial consultation.

If An Agreement Cannot Be Made During Mediation, Is Court The Next Step?

In the case of a mediation, the court has likely been involved already. After a foreclosure lawsuit has been filed, this is typically when the request for mediation would be placed. As you read above, courts will often be in favor of a mediation to potentially avoid a formal trial.

If the mediation successfully leads to an agreement between both parties, a trial will not be necessary. However, in the event that no agreement can be reached during mediation, the litigation will continue on its traditional path and be concluded via a trial or summary hearing.

What Advice Do You Give To Clients Who Are Preparing For Foreclosure Mediation?

I always like to ensure that my clients know what they’re getting into with mediation, as well as having a clearly defined goal of what they would like to get out of the process. Generally speaking, foreclosures will work in favor of the bank, so it may benefit you to at least elongate the process through mediation and maximize the value of your home.

There is a very low bar for banks when it comes to recovering your home as a collateralized asset. As long as they can prove a 51% likelihood of what you owe them, they will win the case. It is very rare that you will win in a foreclosure hearing, so it’s important to be sure you prepare for all potential outcomes and adjust your expectations accordingly.

For this reason, mediation is generally best suited for arranging a loan modification or negotiations with someone with administrative authority. This will help you avoid non-compliance from servicing agents and is generally the purpose of mediation.

How Do You Reassure Clients Who Are Anxious About Facing The Bank’s Representatives During Mediation?

The most important thing to remember when you are dealing with a bank is that, ultimately, you are dealing with another human. I try to reassure my clients that the person on the other end of the mediation is not the billionaire pulling the bank’s strings, it is simply another person just trying to do their job. It can be rather affirming to realize that we are dealing with other humans who we will work with to the best of our abilities.

The mediation process can be an uncertain and anxiety-provoking time, so it is crucial to maintain transparency with your attorney so that they can help you make the process as painless as possible. When you work with Dubyak Law Firm, I will be here to ensure your voice is heard, and your interests are protected throughout your mediation process.

Still Have Questions? Ready To Get Started?

If you need to learn more about Foreclosure Mediation In Escambia County, schedule an initial consultation with Dubyak Law Firm. Get the information and legal answers you are seeking by calling (850) 266-7822 today.