Foreclosure Mediators: Banks Pushed Us to Fail
Lisa and Mitchell Glogowers’ home is scheduled to be sold at auction in March, despite attempts to get a loan modification and going to mediation with their lender.
Palm Coast, FL – February 21, 2011
Florida’s Supreme Court sought a foreclosure lifeline in forcing banks and borrowers to mediation. It was hoped a judicial referee could help unclog court dockets and free struggling borrowers.
But in documents obtained by The Palm Beach Post and described in a recent court order, mediators complain lenders and their attorneys are stifling the system by pressuring negotiations to end in a stalemate.
In some cases, mediators report that deals were struck for trial payment plans or to seek a loan modification, but that banks or their attorneys asked for the meeting to be recorded as an impasse.
The motive for a deadlock, homeowner advocates say, is money. Declaring a different outcome stalls the process and could mean a return to mediation if an agreement falls through. At the same time, several of the state’s large foreclosure law firms also run title companies, which can pick up business when a home is repossessed.
Full Story >>>> Palm Beach Post [Feb. 20, 2011]
of course
Look, we would have never been in this current mortgage situation if the guidelines were never "laxed" in the first place by Fannie/ Freddie.
Before when you only need 5% down, 1 day self employed, 680 credit score, stated income/ stated assets……..this is what happens.
The more the government is involved, the more of a log jam we have…….