SouthFloridaBankruptcyLawBlog

I. Pursuant to Administrative Order 13-01, the Bankruptcy Court for the Southern District of Florida has implemented a "Loss Mitigation Mediation" (LMM) program. The goal of LMM is to "facilitate communication and exchange of information in a confidential setting and encourage the parties to finalize a fesible and beneficial agreement with the assistance and supervision of the United State Bankruptcy Court."

Wright v. Bank of Am., N.A., No. 10-cv-1723, 2010 U.S. Dist. LEXIS 73807, at *9-15 (N.D. Cal. July 22, 2010) - July 22, 2010, Judge Jeremy Fogel, of the United States District Court for the Northern District of California, held that borrowers are not intended third-party beneficiaries of the Servicer Participation Agreement and, therefore, lack standing to sue for an alleged breach of the agreement.

Chapter 13 bankruptcy may present a platform to obtain modification of first mortgages under the U.S. Treasury Department's "Home Affordable Modification Program" (HAMP).

As most people are aware, Congress did not yet pass the "cram-down" provision for principal residential mortgages. Despite this, the legal landscape does seem to indicate that the HAMP program will be of substantial assistance to homeowners - perhaps in many instances - more than the much sought after "cram-down".

Chapter 13 bankruptcy is often used to save a person's home from foreclosure. Under chapter 13, you are allowed to stop the mortgage foreclosure case and catch your mortgage up-to-date. The chapter 13 plan usually involves paying off the mortgage arrearage over a 3 to 5 year period in addition to making your regular ongoing monthly mortgage payments.