Effective April 1, 2013, the United States Bankruptcy Court for the Southern
District of Florida entered an Administrative Order implementing the Loss
Mitigation Mediation program, commonly referred to as LMM. Mediation is
a method of resolving disputes between parties. It requires a neutral
third party who facilitates communications between the parties and confidentiality
- a critical element of mediation; it ensures open communication between
the parties without the fear of reprisal.
A frustration shared by many homeowners seeking a loan modification is
the lenders' request for the same documents over and over again despite
having certified receipt of the lender receiving the requested document.
The LMM program alleviates this nuisance by mandating all participants
use an approved secure online portal for the submission of documents and
communication. The portal stores the documents received and tracks the
date and time they were submitted. Additionally, the Mediator facilitates
communication over the portal, preparing the modification request for
Upon submission of the documents, the borrower is entitled to two, one-hour
mediation sessions. This time is used to clarify any ambiguity in the
documents, allow the parties to discuss the various programs the borrower
will be considered for and if the borrower doesn't qualify - explain
the reason for the request being denied. There are no guarantees that
a borrower will be approved for a modification under LMM, but often times
it is their last chance at saving their home utilizing a program which
guarantees that their modification request will be reviewed by their lender.