I recently came upon an interesting article on the NACBA website.
A new program, established by the United States Bankruptcy Court for the Middle District of Florida, has helped greatly in approving loan modification and principal reduction programs between homeowners and mortgage companies. This program is running in two counties in and around Orlando, FL.
This program, which costs an additional $375 to participate, is available to Chapter 13 debtors and has shown a 90% success rate thus far with those who have applied for a home loan modification. Principal reduction efforts have worked to a lesser extent, about 20% success. The rate for state court loan modification mediation success is around 4%.
The program is set for implementation in Jacksonville, FL. I would hope that the Northern District of Illinois would take notice and consider implementing a similar program. The alternative, dealing with lender's loss mitigation departments, clearly has not worked.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
