A Florida Home Loan Modification-Focused Program
Loss Mitigation Mediation (LMM) Program
Bankruptcy Attorneys at the Klein Law Group can help you obtain a loan modification with the assurance that your requests are being handled fairly and promptly.
Loss Mitigation Mediation (LMM) is a new home loan modification-focused program initiated by the Bankruptcy Court for the Southern District of Florida aimed to help debtors, primarily in Chapter 13, resolve mortgage issues on residential property. A key goal of this program is to lower the chances that lenders will act in bad faith when handling requests for loan modifications and to increase the chances for qualified debtors to reach these agreements with their lenders.
Although the program is voluntary and is available to debtors under Chapter 13, 12, 11 and 7, it’s expected to be used most often in Chapter 13 bankruptcies.
The Loss Mitigation Mediation (LMM) program serves as an extremely valuable resource for debtors who are going through the bankruptcy process and who are at potential risk of losing their homes. The traditional method for applying for loan modifications has generally involved lenders acting unscrupulously or simply being careless in the handling of debtors’ loan modification requests. Under this new program, lenders are essentially forced to act honorably and ethically when debtors file for Chapter 13 bankruptcy because of the higher level of accountability that the program provides.
What Does the Loss Mitigation Mediation Program Do?
Here’s how the program works:
- After filing bankruptcy, you can request mortgage mediation for the purpose of modifying your mortgage or to negotiate a surrender of the property if you do not wish to keep it. The court-approved mediator you choose will upload all application documents to an internet portal.
- Documents in the portal will be immediately available for review by the mediator, the mortgage holder or servicer, and the debtor’s attorney. Documents can be added or updated at any time. They will not be viewable by the general public or by creditors in your bankruptcy case other than the mortgage holder you are mediating with.
- While a Chapter 13 case is pending mediation, you will be required to make adequate protection payments to the bankruptcy trustee as part of your proposed Chapter 13 plan. Also, each party will be required to pay a mediator cost prior to the scheduling of the mediation. The attorney’s fee for the mediation is capped by the court and may be paid through your Chapter 13 plan.
- A mediation will take place with the mediator acting as a facilitator to assist with the modification process. Modifications may include traditional HAMP modifications, other government programs (excluding Florida’s Hardest Hit), or in-house modifications.
What’s The Next Step?
If you’d like to learn more about how we can assist you in securing a loan modification through the Loss Mitigation Mediation (LMM) Program, call our Boca Raton law office at 561-353-2800 to set up a complimentary consultation.