A task force was formed to address the crises and they identified lack of communication between the parties as the most significant issue. The Florida Supreme Court addressed this issue by requiring mediation in all foreclosure cases involving homestead property unless the parties agree otherwise or have already participated in mediation.

The mediation will be handled by a Florida Supreme Court certified mediator appointed by the Court. The costs of the mediation will be paid by the lender and the total cost may not exceed $750. The plaintiff (lender) must have a representative who has full authority to settle at the mediation but they may appear by telephone or other electronic method.

The homeowner must provide financial information to the mediator and meet with an approved foreclosure counselor prior to mediation. They may also request certain information from the Company suing them before going to mediation.

The mediation manager must schedule mediation no earlier than 60 days and no later than 120 days after the foreclosure is filed.

The program is being implemented in each Circuit Court and right now the Seventh Circuit and the Fourth Circuit (Duval, Clay and Nassau Counties) have not implemented the managed mediation program. The Supreme Court just authorized the program on December 28, 2009.

Now back to the question if the program will help foreclosures in St. Augustine. I would hope that if a lender has options to foreclosure such as a loan modification, they would see the benefit of modifying the loan rather than incur the cost of mediation and the cost of foreclosure. I would also hope that short sales would become another viable option and lenders would be more cooperative in approving and closing a short sale rather than face mediation and foreclosure.

As you can see, I don’t have the answer yet. I will keep you updated as the program gets implemented in our area and we see the results.

Don’t miss the encore presentation of our free, educational webinar series titled “Avoiding Foreclosure” in December. The online webinar series offers the following presentations for homeowners in distressed situations:

Dec. 1, 2009 at 10 a.m. EST: “Why You Should Avoid Foreclosure”
Register at https://www1.gotomeeting.com/register/859811800
Sherry Davidson, President of Davidson Realty, Inc., will lead a discussion with Mirtha Barzaga, an agent with Davidson Realty and Kevin Koscinski, a mortgage loan officer with Bank of America. Barzaga will share information about how she has helped northeast Florida homeowners to avoid foreclosure, as well as how she educates them on the impact a foreclosure would have on their jobs or security clearance. Koscinski will share his experience about impacts to credit score.

Dec. 10, 2009 at 10 a.m. EST: “How to Avoid Foreclosure”
Register at: https://www1.gotomeeting.com/register/584635016
Sherry Davidson, President of Davidson Realty, Inc., Suzy Evans, an agent with Davidson Realty, Inc. and Damien Blumstein of Dolphin Mortgage will discuss nine options to foreclosure including mortgage modifications, refinancing and short sales.

Dec. 17, 2009 at 10 a.m. EST: “More Information about the Short Sale Option”

Register at: https://www1.gotomeeting.com/register/274814288
Sherry Davidson, President of Davidson Realty, Inc., Dottie Lay, an agent with Davidson Realty, Inc. and Cindy Vaughn, Davidson Development’s Accounting Manager will discuss what a short sale is, why short sales are normally the best answer to avoiding foreclosure, requirements for short sale approval, and the biggest concerns of homeowners in short sales.

The following November webinar sessions may be viewed online anytime at:
* “How to Avoid Foreclosure”
* “More Information About the Short Sale Option”

“Strong participation in our first webinar series proved that many homeowners need this information. With 25 Certified Distressed Property Experts® (CDPE) on staff, Davidson Realty, Inc. is in a unique position to inform and advise homeowners on the options available to them when they are facing foreclosure or anticipating tough financial times,” said Davidson Realty, Inc. President Sherry Davidson, CDPE. The web-based seminars last 20 to 40 minutes followed by a question and answer session.

As millions of American families are currently enduring the difficult prospect of foreclosure, the first series kicks off in November with three Webinars about the different opportunities available to families and individuals facing foreclosure.

The first series is designed to help homeowners who are in distressed situations understand their options with the foreclosure process. The following topics will be presented with this first series:

• Nov. 5, 2009 at 10:00 a.m. EST – “Why you should avoid foreclosure”
• Nov. 12, 2009 at 10:00 a.m. EST – “How to avoid foreclosure”
• Nov. 19, 2009 at 10:00 a.m. EST – “More information on the short sale option”

The Web-based seminars will last 20 to 40 minutes followed by a question and answer session, for a one hour-long presentation. Each Webinar will be hosted by Davidson Realty president Sherry Davidson and a guest speaker, Certified Distressed Property Expert® and Realtor® from the Davidson Realty team, to include Mirtha Barzaga, Suzy Evans, Dottie Lay and Cindy Vaughn.

Participants are asked to register for each seminar by the close of business the day before the scheduled Webinar by visiting https://www1.gotomeeting.com/register/425365145.

A live encore of the series will be aired in December on Dec. 3, Dec. 10 and Dec. 17, all at 10:00 a.m. EST. A second series, for which the topic is currently being planned, will be produced in January 2010.

Real estate professionals with the Certified Distressed Property Expert® (CDPE) designation have trained extensively to understand the options, solutions and most effective methods for dealing with homeowners facing hardships; and Northeast Florida’s Davidson Realty, Inc. has a Distressed Properties division and 25 CDPEs on staff to provide solutions for homeowners facing hardships in today’s market.

The 25 CDPEs on the Davidson team have comprehensive training and experience plus a specific understanding of the complex issues confronting homeowners and their foreclosure avoidance options. Everyday, those CDPEs advocate for families and address their unique needs. The Davidson CDPEs know that a foreclosure is financially and emotionally devastating, and believe that families should not go through a foreclosure alone.

Individuals in Northeast Florida facing foreclosure should find a CDPE prepared to handle their specific needs.

Brian began the morning by discussing perspective. The economy and the real estate market are cyclical but when we are in a downturn like we have been for quite some time, it feels like it will last forever. We went through the history of the United States to reinforce that this too shall pass. The real estate market will rebound like it has every time before.

We looked at the National Association of Realtors statistics to understand how many Realtors have left our profession. Many of the Realtors with less experience and knowledge are no longer selling real estate, which only supports the fact that it is in your best interest to work with seasoned real estate professionals.

Brian pointed out one positive aspect of the real estate downturn, which is great pricing for buyers. I know if you are looking at short sales in St. Augustine, you will find some unbelievable deals. He also discussed how affordable homes are today because of the interest rates being so low and the ratio of salaries to the payments required to purchase a home.

It is always great to get away, make new friends and get a new perspective.