Notice of Intent to Participate in Loan Modification Mediation Program
Official Procedure - Last Updated: February 09, 2022
References
| CM/ECF Menu |
Bankruptcy>Notices |
| Event |
Notice of Intent to Participate in Loan Modification Mediation Program |
| Rules / Code / Resources |
Fed.R.Bankr.P. 11 U.S.C. § Local Rule |
Background
The Chapter 13 Mortgage Modification Mediation Program is designed to help qualified Chapter 13 debtors renegotiate their mortgages and keep their homes. The Program supplies an electronic portal that assists communication between debtors and lenders.
The Program is entirely voluntary: both debtor and lender must consent to participate. Debtors and lenders are also free to modify mortgage obligations without using the Program and the portal. The Program simply provides parties with a new vehicle for doing so.
Debtors’ counsel who enter into the Court-Approved Retention Agreement and the new Addendum (Local Form 13-8.5) and who pursue a mortgage modification through the program will be presumptively entitled to additional flat fees as compensation.
The filing of the Notice of Intent to Participate in Mortgage Modification Mediation and serving it on the lender initiates the mediation.
The Notice should attach a Certification of Readiness from the debtor.
Chapter 13 Mortgage Modification Mediation Program pdf
Sample: Notice of Intent to Participate (LMM Form 1)
Sample: Certification of Readiness (LLM Form 2)
Before You Begin:
Qualifications to participate
-
Only Chapter 13 debtors can participate
-
Mediation is limited to mortgages on the debtor's principal residence
-
Debtor(s) must have a steady income and during the mediation must be able and willing to make monthly payments to lender during the mediation period equal either to
-
31% of the debtor's gross monthly incomes (minus any HOA fees) or
-
80% of the current monthly mortgage payment plus the monthly escrow amount for taxes and insurance.
-
Debtor must be able and willing to pay the fees for the program as well as additional attorney's fees ( if the debtor has an attorney who represents the debtor in the mediation). The current document preparation fee is $60.00, and the current portal submission fee is $60. The current program management fee is $600, of which the debtor must pay $300.00
Step-by-Step Procedures:
-
Select Bankruptcy>Notices
-
Enter case number and click Next
-
Select Notice of Intent to Participate in Loan Modification Mediation Program from event pick list and click Next
-
Select Party(s) from party pick list or Add/create new party, click Next
-
The Attorney/Party Association screen may display. If it does, click here. If not, click Next, and go to step 6
- The following message will appear, click Next
Please Note: You Mustserve this notice on the lender.
REMINDER: Please include the Certification of Readiness, Certificate of Service and proposed Agreed Order as separate attachments.
-
The PDF Document selection page will display.
-
Browse, View, and Attach, click Next
-
The Final Text screen will display. This is your final opportunity to modify the entry before submitting the filing. Click Next
- Verify the accuracy of the docket text.
If not correct,/if correct
-
Click Next to complete the filing process
The Notice of Electronic Filling will display. It serves as verification that the filing has been sent electronically to the court.
Copies of this notice and the document filed are emailed to all participants who receive electronic notification in the case. You have a period of 15 days for a one time free look at the documents.