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July 29, 2010 |
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| May 19, 2009 |
By: Jordana Mishory |
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s a state task force labors to develop a uniform statewide approach to the onslaught of foreclosure cases, Broward and Palm Beach counties are rolling out new programs of their own.
Palm Beach Chief Circuit Judge Kathleen Kroll will launch a pilot program next month allowing homeowners to confer with law clerks and court interns to get help understanding the paperwork and see if they’re eligible to rework their loan. Kroll also plans to assign newly appointed Circuit Judge Meenu Sasser, who takes the bench next month, to all foreclosure cases. Also in June, all civil circuit judges will dedicate one day to hearing nothing but summary judgments in foreclosure cases setting between seven and 10 cases every 30 minutes. They have 888 cases set for June.
Broward Chief Circuit Judge Victor Tobin plans to require lenders to make a good-faith effort to meet with all homeowners interested in settling their foreclosure cases.
Both are trying to solve complaints by mortgage holders who say they can’t find anyone in a position of authority at their lender to work with them.
The Miami-Dade Circuit Court created a mandatory mediation program last month for cases involving owner-occupied homes. The program mandates lenders pay an additional $750 fee for the mediation services of the Collin s Center for Public Policy, a nonprofit Tallahassee think tank specializing in dispute resolution.
Others counties around the state are pursuing different options for bringing their foreclosures
caseloads under control.
A task force formed by the Florida Supreme Court issued an interim report last week suggesting it would recommend uniform case management procedures and a model mediation program.
In Broward, Tobin said he plans to sign an administrative order mandating a series of new forms for all foreclosure cases.
When served with a foreclosure case, a homeowner would be alerted that they can submit a written request for a meeting with a lender’s representative. The lender would be required to provide contact information for a representative with authority to settle the case. Lenders also must certify they made a good-faith effort to meet with homeowners before seeking summary judgment. A separate form has a place for a lender’s attorney to certify when a meeting took place and whether the issue was resolved.
“These forms would narrow down who wants to rework their loan and who doesn’t,” Tobin said. He said a large percentage of people already have abandoned their property before a foreclosure filing.
When asked if he was worried the new forms would invite forgery to move cases along, he said, “I’m not concerned about that in the least.”
“We have lawyers certify all the time, and we accept that as true,” Tobin said. He said no judge has brought to his attention possible untruths in mortgage foreclosure cases.
Tobin’s plan echoes procedures Kroll instituted in November. She issued an administrative order requiring a notice in English, Spanish and Creole be sent to homeowners listing who they can turn to for help and what options are available. A separate form includes information about a lender’s representative who has authority to re-work or modify the loan and the total amount the homeowner owes.
Homeowners also are given a foreclosure questionnaire and information on how to either request a loan modification or a short sale. The forms request information on employment, assets and liabilities. The court requires homeowners to file a compliance notice with the court stating they had sent the foreclosure questionnaire to their lender, which tells judges that homeowners made an attempt to make things right.
Kroll signed another administrative order Monday affecting cases where a homestead property is involved with loans held by financial institutions. Starting Wednesday, all those case filings will include a notice to homeowners setting a conference time to meet with court counsel and interns. Homeowners would not face a penalty if they do not attend.
Court general counsel Amy Borman said the seven-week pilot program would help people navigate what can be a bewildering process.
“My staff attorneys, law clerks and summer interns would meet with these people and walk them through,” she said. “What we think is happening is that [homeowners] are getting so many papers served upon them — the summons, the complaint and all the exhibits plus the forms from the administrative order — that they just don’t see it or understand it. It’s very confusing.”
Under the new order, a packet going to homeowners will include a brightly colored piece of paper setting conferences on Tuesdays and Thursdays. The staff will show homeowners what needs to be filled out and inform them of legal aid or other legal organizations that could provide legal advice. The court is setting 300 conferences a week for the program running from June 11 to the end of July. If they work, the court could extend the pilot or increase the frequency of conferences.
Borman said she hopes the program will help the court determine how to make more improvements.
The court also intends to create a section on the court’s Web site where homeowners can obtain more information.
“We’re hoping what this would do is help those homeowners who want to work with lenders,” Kroll said.
When told about the new programs, foreclosure defense attorney Damian Turco commended the two courts for their work.
“The most important piece is that it provides guidance to homeowners as to how to pursue the resolution of the issue,” said the Palm Beach Gardens attorney.
He said many homeowners who receive a foreclosure summons in the mail would probably start “freaking out” and not know where to turn.
“Most people are in foreclosure because they can’t pay their mortgage payments. They don’t have a lot of money to pay an attorney,” Turco said.
The new forms would help cut down on some of the legalese, and the free counseling could be very helpful.
Tobin has no plans to create a special foreclosure division or require mediation. He said mediation programs just add an financial burden on lenders.
“The banks made the loan. They know how to resolve the loan. They know what losses they can suffer and what losses they can’t,” Tobin said. The loans were made without a mediator, and he said a mediator doesn’t need to be there when the loan is resolved.
In Broward, judges handle about 2,500 to 3,000 foreclosure cases each. Spillover cases are sent to a senior judge who does one or two dockets of foreclosure cases a day.
“I’m not worried about clogging the courthouse,” Tobin said of his decision not to order mediation. “No one is coming in and saying we’re overwhelmed with foreclosures.”
Jordana Mishory can be reached at jordana.mishory@incisivemedia.com or at (954) 468-2616. |
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