Mortgage Mediation PDF Print E-mail


A Light at the End of the Tunnel

The Florida Supreme Court has offered a lifeline to struggling homeowners who are facing foreclosure of their primary residences.  Before losing their homes to foreclosure, homeowners are now entitled to undergo mortgage mediation before a foreclosure can be finalized.

Andrew Tarr is a Mortgage Mediation lawyer who will guide and counsel you through the process and ensure that the Lender participates in good faith and gives you the opportunity that the Supreme Court of Florida says you deserve.

What is Mortgage Mediation?

Mortgage Mediation is a form of alternate dispute resolution that gives you the right to a face to face meeting with your lender in an effort to modify the terms of your loan in accordance with federal modification programs, or your lender's own in house modification program.  It is a light at the end of the tunnel that could keep you in your home.

Mortgage Mediation starts with independent financial counseling with a State of Florida certified financial counselor who reviews your personal financial situation in advance of forwarding it to the Lender.  The Law Offices of Andrew Tarr will assist you with preparation of the financial package that will be submitted to the certified financial counselor and ensure that your Lender participates in the Mediation in good faith.  We are there for your every step of the way.

What could happen at Mortgage Mediation?

While a loan modification that would enable you to keep your home is one possible outcome, other negotiated agreements might include short sales or simply surrendering the property to the lender through a deed in lieu of (instead of) foreclosure.

What kind of loan Qualifies For Mortgage Mediation?
Mortgage Mediation does not apply to second or vacations homes, or to commercial or investment properties.  It only applies to loans involving your primary residence that qualifies as your homestead.
Is participation required?
Participation is not mandatory for borrowers, who may chose to opt-out. However, participation by lenders is required. Mortgage mediators must be from HUD-certified nonprofit credit counseling agencies

Why should you participate?

Traditional loan modification can be extremely frustrating due to the endless distance between you and your lender.  Mortgage Mediation requires the lender to have their attorney and their representative present at mediation.  If the Lender fails to participate in the mediation in good faith, they may be subject to penalties by the Court and they may not be able to proceed with foreclosure.

The order requires that borrowers have the opportunity to meet with their lender and, with the aid of a certified mortgage counselor, try to work out an alternative solution to foreclosure. The lender would be able to proceed with foreclosure if no agreement is reached.


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