Mediators, judges, and homeowners facing foreclosure are collectively cheering yesterday's order from the Florida Supreme Court ordering mediation for all foreclosure cases. Already required for all litigation cases, the new ADR requirement for foreclosure matters is aimed at stemming the nearly a half million foreclosures which were filed last year.

Caveats/details:
1. Homeowner pays none of the mediation costs upfront but can be charged with the costs in the Final Judgment;
2. Only Florida Supreme Court certified mediators will be referred cases;
3. The mediator requirement only applies to cases filed AFTER the order (but I can foresee judges agreeing to a Motion to Compel/Request Mediation in pending matters);
4. Mediation fees are capped at $750;
5. New requirement that lender must prove they hold the note.

I'm told that foreclosure defense often involves slowing the process so that the homeowner can develop alternatives. Without question, adding requirements where the lender has to come up with the paperwork to prove the note and scheduling mediation where someone with authority from the bank must attend would, indeed, assist in that purpose.

Commentary from the South Florida Business Journal is here.

The Florida Supreme Court order is here.