Foreclosure cases are often stressful and emotional. Lawyers who handle foreclosure cases in Miami, whether they represent the lender or the property owner, know that these cases can also be difficult for the parties involved. Instead of using traditional methods of resolving foreclosure cases, many Miami attorneys have used mediation with greater success.
The first benefit that mediation offers in foreclosure cases is the reduced expense for all parties involved. Even if the lender is a bank worth billions of dollars, cutting costs wherever possible is always an advantage. If your clients are homeowners in financial trouble, they will be especially grateful for the reduced costs that mediation offers.
In many cases, the parties may be able to resolve any payment default issues without filing a foreclosure proceeding. Many banks are willing to work with individuals who are struggling to make payments, as it is more beneficial to the bank to receive payments of some sort than to acquire a property and attempt to sell it. By trying to resolve the dispute early, the parties may be able to restructure the mortgage in a way that allows the homeowner to keep the property and resume making payments to the lender.
The presence of a mediator may also reduce some of the tension and hostility that may arise in discussions about foreclosure and mortgage payments. When the homeowner and the lender attempt to discuss payment default issues, the conversation can become heated. The homeowner may be terrified of losing the family home, and the lender may be frustrated by its inability to collect payments. Having a third party neutral present – an experienced mediator — often defuses the situation by offering a calmer environment in which to discuss the case. This encourages the parties to focus on settling the case.
Foreclosure mediation allows the parties to move forward from their dispute. Understanding these benefits will allow you to offer cost effective solutions to your clients.