Review of Second Amended Administrative Order Prescribing Procedures for Mortgage Modification Mediation

U. S. Bankruptcy Court Middle District of Florida

Review of SECOND AMENDED ADMINISTRATIVE ORDER PRESCRIBING PROCEDURES FOR MORTGAGE MODIFICATION MEDIATION

EFFECTIVE SEPTEMBER 1, 2015

I. District-wide uniform Mortgage Modification Mediation (MMM) procedures
II. Current A/O is effective as of September 1, 2015
III. MMM available for all cases and any type of real property
IV. Timing:

A. Ch 13 & Ch 12 cases: Motion for MMM must be filed within 90 days of filing/conversion
B. MMM to be concluded within 150 days (time may be enlarged)
C. Lender reconsideration for cause of Court Order Directing MMM within 14 days
D. Joint selection of mediator within 14 days of Order Directing MMM

1. If no agreement, Debtor selects
2. Lender may file objection within 7 days
3. Timely objection to mediator filed – Ch 12/13 Trustee selects; Ch 7/11 Clerk selects

E. Mediator fee shall be paid within 7 days of designation
F. Mediator shall file report within 7 days of each mediation conference
G. Order approving permanent MMM agreement recorded within 90 days

V. MMM Motions

A. Shall include on first page:

1. Complete property address
2. Mortgage loan number – last 4 digits

B. Improper motion abated until amended motion includes all information
C. Timely filed motions – Court Order directing MMM entered (no notice)
D. Untimely filed motions – Court may set hearing, grantif good cause

VI. Secure Portal shall be used for all written communications
VII. Mediators

A. FEE $500 – $250 equally paid by Debtor and Lender
B. Must be qualified under A/O FLMB-2013-3
C. Additional hourly fees for MMM conferences extending beyond two, 1-hour sessions.
D. Timely adhere to reporting requirements. If not, on motion, notice and hearing, Court may order disgorgement of fees and removal from Registered Mediation Panel.

VIII. Temporary MMM agreement – parties submit proposed Order with Motion for approval – no negative notice or hearing
IX. Permanent Mortgage Modification

A. Debtor files motion
B. Motion must contain

1. Agreed terms
2. New Mortgage payments
3. Lender’s mailing address

C. Order approving permanent MMM agreement

1. May be recorded in public records of county where property located
2. Debtor records, unless parties agree otherwise

X. Adequate Protection Payments

A. Debtors in Ch 12 or 13
B. Payments to Trustee
C. Homestead (payments are lesser of -)

1. 31% of debtors’ gross disposable income (after deducting HOA fees)
2. Normal monthly payment

D. Non-homestead, income producing property – 75% of gross rental income
E. Trustee holds payments until further Order or parties joint stip for disbursement

XI. Non-Chapter 12 or 13 – all other chapters: Debtor makes payments directly to Lender – no court approval or modification of automatic stay
XII. MMM process

A. All payments made applied under loan documents and non-bankruptcy law, unless parties agreed to contrary
B. Deemed concluded upon earliest of:

1. Conclusion Report filed by Mediator
2. Order approving temporary or permanent payment plan
3. Other Court Order indicating conclusion

XIII. Disbursement of payments held by Trustee (Ch 12 or 13) after MMM conclusion

A. Terms of parties as set forth in agreed Mortgage Modification
B. No agreement

1. Payments to lender to be applied under loan documents & non-bankruptcy law
2. Lender rejection of undisbursed funds – Trustee disburses as provided by Chapter 13 plan or Confirmation Order

XIV. Ch 12 or 13 – Dismissed or converted to Ch 7 or 11

A. Trustee disburses to Debtor
B. Funds mailed to Debtor’s attorney, if represented

XV. Confirmation of Ch 12 or 13 plan subject to pending MMM process
XVI. Attorneys fees are not affected by MMM procedures