The United States Bankruptcy Court for the Middle District of Florida, as well as the other districts of the state, has initiated the Mortgage Modification Mediation (MMM) program (also referred to as the Loss Mitigation Mediation program) in an effort to assist individuals with obtaining mortgage modifications. The program allows debtors who own an interest in real property with a mortgage on it, to explore modifying the mortgage loan.
Orlando launched the pilot program for MMM and kept statistics regarding the outcome of its mediations, which show a loan modification average success rate of 70%. This is significantly better than the state court mediation system which averaged less than a 3.6% success rate.
The MMM program can assist a debtor as follows:
- Currently, an individual Chapter 7 debtor may request MMM to modify a mortgage or surrender any real property that the debtor has an interest in.
- An individual Chapter 11 debtor can request MMM to modify a mortgage or surrender real property that the debtor has an interest in and is used as the debtor’s primary residence.
- An individual Chapter 13 debtor may request MMM to modify a mortgage or surrender any real property that the debtor has an interest in.
The debtor, the lender, or the court may request referral to MMM. If you participate in the program, MMM provides an online portal which allows debtors and lenders to submit documents via a secure website and correspond online with each other and a mediator. The goal of the website is to allow the parties access to easily view all documentation and avoid multiple submissions or lost records. The MMM program also requires all parties to act in good faith and diligently work to modify the debtor’s loan and avoid foreclosure. Finally, the MMM program allows a neutral mediator to supervise the negotiations, which increases the likelihood of a resolution being reached.
If you are have questions regarding the MMM program or how bankruptcy could benefit you, contact us for a free consultation.