Mediation in Bky as a result of a foreclosure

6 Replies

We started foreclosure on a 2nd lien in FL, they filed for Ch 13, and they want mediation for some reason. They have no funds to reinstate, and can only afford the $125/ mo they are paying in the plan, she is not interested in cash for keys, and is current with the first lien.

On top of it, sanctions are imposed on us for failure to register timley with the DMM portal, and if we reduce the balance, they will be lifted & if not, it will be the attorney fees, which might be a couple thousand.

Looking for input on what you would do in this case if you were me...

Originally posted by @Christopher Winkler :

We started foreclosure on a 2nd lien in FL, they filed for Ch 13, and they want mediation for some reason. They have no funds to reinstate, and can only afford the $125/ mo they are paying in the plan, she is not interested in cash for keys, and is current with the first lien.

On top of it, sanctions are imposed on us for failure to register timley with the DMM portal, and if we reduce the balance, they will be lifted & if not, it will be the attorney fees, which might be a couple thousand.

Looking for input on what you would do in this case if you were me...

 My two cents, if I were in your shoes is to do the math. If you reduce the balance, how much do you have to reduce it in order to get straight with everyone? If not, how much are the attorney fees? You say a couple thousand? If the attorney fees are a couple thousand, unless reducing the balance is only a couple thousand, I'd put my foot down and object, assuming I'm understanding you correctly. You said she has no money to reinstate....that's the arrears you are talking about right? She couldn't have received plan that was approved without addressing the arrears, unless you never objected when you had the opportunity.

Originally posted by @Ron S. :
My two cents, if I were in your shoes is to do the math. If you reduce the balance, how much do you have to reduce it in order to get straight with everyone? If not, how much are the attorney fees? You say a couple thousand? If the attorney fees are a couple thousand, unless reducing the balance is only a couple thousand, I'd put my foot down and object, assuming I'm understanding you correctly. You said she has no money to reinstate....that's the arrears you are talking about right? She couldn't have received plan that was approved without addressing the arrears, unless you never objected when you had the opportunity.

@Ron S They don't say in the filings, just reduce after mediation. And the award was the other attorneys fees because our servicer did not get registered in the portal in time. The order just says if the Debtor & Silverwood reach a modified mortgage which results in a principal reduction, the sanction is resolved. If we fail to, their counsel will file a Statement of Time detailing time to bring the montion for the amount. Their attorneys are the biggest scumbags, having challenged every debtor, it was amazing... 

Originally posted by @Christopher Winkler :
Originally posted by @Ron S.:
My two cents, if I were in your shoes is to do the math. If you reduce the balance, how much do you have to reduce it in order to get straight with everyone? If not, how much are the attorney fees? You say a couple thousand? If the attorney fees are a couple thousand, unless reducing the balance is only a couple thousand, I'd put my foot down and object, assuming I'm understanding you correctly. You said she has no money to reinstate....that's the arrears you are talking about right? She couldn't have received plan that was approved without addressing the arrears, unless you never objected when you had the opportunity.

@Ron S They don't say in the filings, just reduce after mediation. And the award was the other attorneys fees because our servicer did not get registered in the portal in time. The order just says if the Debtor & Silverwood reach a modified mortgage which results in a principal reduction, the sanction is resolved. If we fail to, their counsel will file a Statement of Time detailing time to bring the montion for the amount. Their attorneys are the biggest scumbags, having challenged every debtor, it was amazing... 

 Very odd...

In any event, I'd calculate the path of least resistance from a cost standpoint and go from there. Good luck.

Originally posted by @Andreas Mirza:

@Christopher Winkler What ended up happening? BTW, I feel your pain regarding borrowers filing Ch 13 and having no means to realistically comply.

 Yeah, its so dumb they file Ch 13 and pay $4-6k, when they can reinstate with that amount. On that one, the opposing shyster attorney challended every single creditor. 

It was a Joint Venture and the investors decided they wanted to take it back and give it to a different attorney, so they bought me out and they are having a similar issue with their attorney, getting registered in the portal. They should have just left it, as we were registered and the cost was a couple hundred $. Though its their money and they can do with it as they please.

Originally posted by @Andreas Mirza:

@Christopher Winkler What ended up happening? BTW, I feel your pain regarding borrowers filing Ch 13 and having no means to realistically comply.

 We just went to sale on a 2nd lien in MD and the day before they file a complaint we are not debt collectors, so we put off sale to get the license. Then they file Chapter 7, and its dismissed in 2 weeks for failuire to file paperwork. So now that our license is in FINAL stages of being issued, FINALLY!, we are ready to go back to sale with that one. They have run out of places to hide, and at this point, after causing us so much grief, never answering one letter, or making us pay a lot of attorney and license fees, I am not going to work with them at all. Now I want the house, or to be outbid at sale. No more Mr. Nice Guy!