NEW PROGRAM

MORTGAGE MODIFICATION MEDIATION

FOR CHAPTER 13 DEBTORS ONLY

The Mortgage Modification Mediation Program (MMM) is a new program designed to help qualified Chapter 13 debtors keep their homes by modifying their mortgage to an affordable payment.  To qualify, the debtor must have steady income and pay 31% of gross income or 75% of the current mortgage payment (whichever is less) while the mediation is pending.  Requesting mediation will allow debtors and lenders to discuss whether modifying a mortgage loan is feasible.  Debtors who are successful may lower their monthly payment amounts and keep their homes.

Mediation is an informal meeting conducted by a neutral mediator (selected at random from a list of qualified mediators) who acts as a discussion facilitator.  The mediator cannot force a lender to modify the debtor’s mortgage but can help the parties reach an agreement.  Mediation is simply a way for debtors and lenders to discuss whether modifying the mortgage is possible.

Qualified debtors who want to use MMM, should complete and file a Notice of Motion and Motion to Participate in Mortgage Modification Mediation Program.  Click here for the required form of Motion.

Note:  The mediation fee is $250.  Debtors and lenders will each need to pay one-half of the fee ($125 each) to the mediator before attending the scheduled mediation.

After the Motion is filed, the lender will have the opportunity to consent or object to participation in MMM.  Click here for a sample consent form.  After the consent is filed a Mortgage Modification Mediation Order will be uploaded by the Clerk.  Click here for the required form of order.  When the debtor has provided all requested documents, the debtor will file a Certificate of Readiness for mediation.  Click here for the form.  If the mediation is successful, the parties may seek Court approval of the modification.  A motion and proposed order should be filed.  Such approval is optional, but will be granted if the parties request it.

Please read the Motion, Consent and Order so you are familiar with the requirements.  For a more detailed description of the program, please click here.  For a complete list of MMMP CM/ECF events and procedures, click here.

MINIMUM QUALIFICATIONS FOR THE
MORTGAGE MODIFICATION MEDIATION PROGRAM

Only Chapter 13 debtors can request mediation

Mediation limited to the debtor’s primary residence (investment properties do not qualify)

Debtor has steady income and can pay up to 31% of gross income or 75% of the debtor’s current mortgage payment (whichever is less) to the modified mortgage payment

IMPORTANT: Debtor must provide signed tax returns, pay advices and other financial information requested by the lender.  Click here for a description of the typical required documents, and note that the debtor is expected to "refresh" the documents by supplying current, updated documents as the process goes along.

Debtor and the lender must each pay half of a non-refundable $250 mediation fee ($125 each) to the appointed mediator before attending the scheduled mediation