Fla. Justices Consider Mediation For Foreclosures

BILL KACZOR

TALLAHASSEE, Fla. (AP) — Mediation would be a good way to expedite a flood of mortgage foreclosures, members of a foreclosure task force said Wednesday, but some disagreed on the details in oral arguments before the state Supreme Court.

Florida's courts are currently trying to cope with more than 290,000 foreclosure cases.

"What this court system has is virtually a tsunami of these filings," said Justice Barbara Pariente.

A majority on the high court's Task Force on Residential Mortgage Foreclosures recommended trying mediation on owner-occupied homes before cases go to court, with lenders picking up the tab. Borrowers would be contacted by phone and mail and asked to participate. The high court did not immediately act on the proposal.

"The data that the banks have says the earlier in the process you get into mediation, the better and more likely you are to resolve the case," task force chair Circuit Judge Jennifer Bailey of Miami said in an interview. She argued for a statewide managed mediation system.

Minority members said mediation should be offered only if ordered by a judge, and the costs — an estimated $750 per case — should be split 50-50 between lenders and borrowers.