70% — My Personal Mortgage Mod Success rate in U.S. Bankruptcy Court Ordered Mediations – This Court established a Good Faith requirement… and it is working!
Here’s My Note on the Process and an Actual Case
When I started in Mortgage Mods, 2009 or so, we had very mixed success, and the paperwork was daunting. The financial data packages retain that quality, but with the new portals and excellent paralegal awareness, the problem is less of a challenge. The U.S. Bankruptcy Court is the most effective forum for success. The State Courts have sporadic successes and inconsistent results.
Recently, in a complicated, non-homestead real estate mortgage situation involving sinkhole issues and intentional tenant inflicted property damage the borrower/debtor’s counsel and lender/creditor’s counsel stepped up to the plate in a spectacular manner. The borrower too significantly participated in the process and provided detailed data, which was thoroughly reviewed and considered by the servicer representative. This rep far exceeded expectations with his understanding, cooperation and expertise. As you know, these mediations are confidential so I can’t say much more. Suffice it to say – the parties reached a settlement. Ultimately, the Chapter 13 was dismissed by the debtor.
Lesson: Consider the U.S. Bankruptcy Court forum for these matters.
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