Mandatory mediation ordered in foreclosures

All homeowners in Orange and Osceola County who go into foreclosure will now be required to attend mandatory mediation with their lender.

In an order sent down by Chief Judge Belvin Perry, applies to all owner-occupied foreclosure proceedings in the two counties.

The order came after Congressman Alan Grayson sent a letter to the judge asking that the mandatory mediation be implemented.

“The American dream is to own a home,” Grayson said. “The American nightmare is to lose one. I am glad I could help keep families in their homes.”

Judge Perry's order requires mortgage lenders to negotiate in good faith within 45 days of a homeowner's request for mediation. In the past, some homeowners may have opted against mediation due to the costs associated with it. The order requires the mortgage lender to cover the cost of the mediation, eliminating one hurdle for homeowners to find a fair solution to their crisis.

In the letter Grayson sent to the Judge on February 12th, he wrote, "When a homeowner is at risk of foreclosure, it makes sense to bring lenders to the table and attempt to work out - in good faith - a deal that saves the mortgage for the lender, the home for the family, and the neighborhood value for the community. Many lenders, I am told, have been unresponsive, institutionally unequipped to work with homeowners to save these deals even when it makes financial sense for all parties to do so."

The order takes effect immediately.