One of the most widespread fears associated with filing for
bankruptcy is the possibility that a person will lose their home during the process.
Under certain circumstances, homeowners and certain investment property
owners who file for bankruptcy in Florida may be able to negotiate an
arrangement to keep their property through a process known as Mortgage
Modification Mediation (MMM).
This process involves having the Bankruptcy Court appoint a mediator to
work with a debtor and their bankruptcy attorney towards negotiating an
agreement with the debtor’s mortgage lender for a modified mortgage.
The goal of MMM is to foster better communication between debtors and
their mortgage lenders. It is important to note, however, that the Bankruptcy
Court will not force any modification and will make no adjudication except
with the consent of both parties. All signed agreements reached at mediation
must be approved by the Bankruptcy Court before they are considered binding
How Does Mortgage Modification Mediation Work?
To begin the process of MMM, a debtor must file a motion with the Bankruptcy
Court within 90 days of filing for bankruptcy. Lenders may seek reconsideration
within 14 days of entry of an order directing MMM. Once the Bankruptcy
Court has issued an order for MMM, the involved parties must jointly select
an approved mediator and register with the court’s internet portal,
with all documents and written communication between the parties being
submitted through the portal. Once an agreement has been reached, the
Bankruptcy Court will review the agreement for final approval.
Similar to any other bankruptcy matter, a debtor’s chances of achieving
a favorable outcome through MMM are only as good as the attorney by their
side. If you are in need of mortgage modification mediation in the Middle
District of Florida, contact Albaugh Law Firm today. Our top-rated Jacksonville
and St. Augustine bankruptcy lawyers can guide you step-by-step through
the bankruptcy process and help you achieve a lasting solution to your debt.
To find out more about how we can assist you,
schedule a free case review online today.