Any experience with MMM in FL BK courts?

Question

We're in DD on a FL NPN and see that the borrower has requested and received Mortgage Modification Mediation in their Ch 13 BK in Florida's Southern BK court. I've done some online research and it looks like an easy way for a borrower/debtor to delay the FC process.

Anyone have experience with this and wouldn't mind sharing?

@Chad U.?

Anyone have experience with this and wouldn't mind sharing?

@Chad U.?

Andy Mirza · Answer

Account Closed After doing a little more research, the MMM program is in place in a lot more BK courts, although this is the first time I've seen it. I think Fl was first in 2014 and then other courts in other states have added the program since. Because participation in the program doesn't release a debtor from other obligations of being in BK, I don't think it's a great stall tactic. There are plenty of things a debtor can do to delay the process that doesn't include the work and effort of submitting a full loan mod package like the MMM requires.

Jay Hinrichs · Answer

that seems like a good thing..  if you have this all in one place full transparency it probably gets the debtor to a realistic place much quicker.

Andy Mirza · Answer

UPDATE:

In this situation, I think the borrower was hoping for a loan modification but didn't use it as an excuse to drag things out. Once the borrower learned that we weren't able to do a loan mod, she amended her plan to surrender the property. Although the debtor's attorney wasn't very responsive to communications in the DMM portal, the whole experience wasn't that bad. I can see how it would make it easier to get loan mods done as everything is kept in a centralized location and communication is transparent between the depot, creditor, and the mediator.

Chris Seveney · Answer

@Chad U.

I have not had to go through this in Florida. I actually don’t buy much in Florida as it’s too competitive (drives up prices).

Have gone through other mediations and as you mentioned many are stall tactics

Andy Mirza · Answer

@Chad U. This is specific to Southern, Middle, and Northern FL BK courts. Here's the link explaining it for Southern Florida:

https://www.flsb.uscourts.gov/...

Yeah, it's bad enough when the courts require it when you go through a FC. Having to go through it in BK court, too, is an added pain. To me, it seems like another tool for bad faith filers to postpone the inevitable.

Chad U. · Answer

Hi Andy, no I have not encountered a mediation inside a BK plan, though there's a first for everything.  However, I've had the pleasure with mediation during the foreclosure, as judges in certain states/counties automatically docket this as part of the process.

@Chris Seveney may have?