When you have fallen behind on your mortgage payments, a loan modification is often the best - or only - way to save your property. Arrears (missed payments) can be folded back into the principal, bring the loan current. At the same time, the monthly payment can be adjusted based on your income, making the mortgage affordable.
Recently, the Northern District of California adopted the Mortgage Modification Mediation (MMM) Program. Upon the filing of the Chapter 13, we file a motion sending your loan modification to mediation - so an impartial mediator can be appointed to oversee the process. Next, a complete modification application is submitted via the program's online portal, where the mediator, bank, and your attorney can see all the documents filed. Finally, the program provides a speedy way of identifying issues, resolving them, and working towards a successful modification.
Orlando launched the pilot program for MMM and kept statistics regarding the outcome of its mediations, which show a loan modification average success rate of 70%. This is significantly better than the state court mediation system which averaged less than a 3.6% success rate.
Many people submit loan modifications, only to be told weeks later they were denied for missing documents that they didn't know where asked for, The MMM program works to prevent that via the web portal.
The MMM program allows your attorney to represent you before a neutral mediator regarding your loan modification - no more calling a point of contact at the bank, hoping to get through a nightmare phone tree.
Loan modifications are just one way to save your home in a Chapter 13. Even if a modification cannot be obtained, the options or refinancing the property or paying back arrears over time might remain.
Many people have tried, often multiple times, to get their own loan modification, only to end up on an endless carousel of document requests. The MMM program helps solve this by submitting documents quickly electronically, where all parties can see.