Bankruptcy Still an Option as Florida Mediation Program Fails
Brandon, FL (Law Firm Newswire) February 29, 2012 – The Florida Supreme Court recently abandoned its efforts at a statewide mediation program for residential foreclosure cases. Lack of participation and low rates of loan modification meant the program was seen as unsuccessful.
“It is not a shock that the courts decided to do away with this program,” said Tampa bankruptcy attorney Reginald Osenton. “There are a lot of people who would rather walk away from their house than sit across the table from a banker.”
The program’s goal was to address the large number of foreclosures stacking up in the Florida courts by looking for other options for borrowers who were no longer able to pay for their homes. But since fewer than half of delinquent borrowers ever responded to the mediation efforts and only about a third of those who responded went through with the program, it had a low rate of success.
“There are still good options for people who want to go through mediation. There are still some lenders who are willing to listen,” Osenton said. “Bankruptcy can be an option that will put a family back on the right track.”
There were many reasons the state program did not survive. Many homeowners who stopped paying their mortgage moved away and dropped off of the radar. Other delinquent borrowers may have already worked out a deal with their lender. Still more borrowers may have simply stopped looking at the mail or answering the phone under a crush of bills.
“Talking to a bankruptcy attorney ends up being one of the best decisions people make,” Osenton said.
To learn more or to contact a Brandon bankruptcy lawyer or to contact a Brandon bankruptcy attorney, visit http://www.brandonlawoffice.com.
Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777
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