The Southern District Division of the Florida Bankruptcy Court, including the counties of Monroe, Miami-Dade, Broward, and Palm Beach County, now allows for loss mitigation options to be negotiated through the bankruptcy court system including the modification of mortgages as of April 1, 2013. The purpose of the LMM program in the bankruptcy setting is to facilitate fair communication between the creditor bank and the debtor in order to arrive at a final resolution of delinquent mortgages. Most importantly, the program includes possible modifications of mortgages for those property owners who can make a modification work.
The LMM Program is available for those who are trying to keep a property or modify its terms under Chapter 13 of the bankruptcy code, including those who want to surrender their property. The Loss Mitigation Mediation Program (LMM) is innovative in that the creditor bank and the debtor communicate through a secure online portal, which allows for the instant interchange of the modification package, other documents, and online communications. The intent of the program is to facilitate communication and document interchange with deadlines through a quick transparent process, which aspires to cut the delay in creditor decision-making and cut down on the duplication of requested documents. The intermediary in this process is a mediator who will be able to consider the feasibility of the proposed plan based on the proof of income, expenses and other documents provided by the debtor.
The LMM Program is available to those who seek to modify their mortgage through the bankruptcy
Court and it is strongly recommended that those who seek to participate in it seek the advice of an experienced bankruptcy lawyer. If you need more information, including what fees costs are associated with participation in this program, please feel free to call us and make an appointment to discuss your bankruptcy modification options.