Florida mortgage mediation options when facing foreclosure
In the wake of the 2008 housing crisis, the Florida Supreme Court embarked on an ambitious plan to mandate a uniform foreclosure mediation process. Beginning in 2010, the Residential Mortgage Foreclosure Mediation (RMFM) program required that foreclosure cases involving a homeowner’s primary residence be referred to mediation before a final judgment could be entered. Under that system, lenders were responsible for paying mediation fees, homeowners were to participate with the assistance of HUD-approved counselors, and courts were expected to delay foreclosure actions until mediation took place. However, the program ended in December 2011. The Florida Supreme Court rescinded its administrative order after concluding that the mandatory structure did not produce enough meaningful results. Many lenders ignored mediation invitations, participation rates were low, and delays clogged dockets without improving settlement outcomes. The Court formally ended the requirement and allowed each judicial circuit to decide whether to continue mediation locally. Documentation of that decision is available in the court’s administrative archives at https://www.flcourts.gov/ . You can also read a clear overview of how and why the original program ended
here:
https://www.nolo.com/legal-encyclopedia/foreclosure-mediation-program-in-florida .
Current foreclosure mediation options in Florida
Although the statewide mandate was repealed, mediation still exists in Florida. The programs have simply shifted to a local and voluntary model. Each of the 20 judicial circuits can operate its own mediation procedure for foreclosure cases, but the details differ across the state. Mediation involves a neutral outside party trying to get both sides in a disagreement or case to reach a settlement . So when it comes to real estate, the mediation process will ensure the homeowner and lenders come together to discuss solutions. Each circuit court may adjust its rules or fee structure at any time. Homeowners who receive a foreclosure summons should contact their local circuit clerk’s office or court-appointed mediation program to determine eligibility and deadlines. Homeowners should first contact their local circuit court clerk or foreclosure division to verify whether a mediation program is active. If not, legal aid or a bankruptcy attorney can help determine whether Chapter 13 bankruptcy with Mortgage Modification Mediation is an option. HUD-approved housing counselors can also help review modification eligibility and prepare documentation. You can contact a Florida HUD counseling agency listed on the site. Homeowners must typically request mediation through a motion or local procedure.
When mediation may help
Mediation remains useful for homeowners who want to keep their homes or settle foreclosure cases without full litigation. It can also delay final judgment long enough to pursue other assistance such as loan modifications or short sales. However, since mediation is no longer automatic, homeowners must act quickly after receiving a foreclosure summons to determine whether mediation is available. The earlier a homeowner files a motion or applies for mediation, the more likely it is to succeed. Waiting until judgment is entered or a sale is scheduled limits these options significantly.
Legacy (historical) information: Florida mortgage mediation program (2010-2011)
The original Florida Mortgage Mediation Program was announced in 2009 and became active in early 2010. The Florida Supreme Court required that foreclosure cases involving a homeowner’s primary residence go through formal mediation before a final judgment could be entered. Mediation involved a neutral third party working to help homeowners and lenders reach an agreement. To qualify, the homeowner had to meet with a HUD-approved foreclosure counselor. The mediator was required to be impartial, operate through a nonprofit or court-approved organization, and manage the high volume of foreclosure actions across Florida. Hearings were scheduled within two to four months after the bank filed a foreclosure suit. The lender initially covered mediation costs, capped at $750, although the lender could later recover the amount if mediation failed. Tenants could also opt in, splitting costs with the lender. The program’s purpose was to reduce foreclosures, preserve homes, and clear clogged court dockets. It was rescinded in late 2011 after the Florida Supreme Court determined it had not met its goals.