By JoAnn Young,In January 2010, the Supreme Court of Florida passed a law that requires all residential home loans that are in foreclosure to go through mandatory mediation. Mediation is a process where the note holder and the owner of the property can discuss alternatives to foreclosure. Alternatives include the following:
1. Refinancing which requires the owner to have good enough credit and to show an ability to pay back the loan under the new refinancing terms. Additionally, the Making Homes Affordable Program (HAMP) has a division makes provisions for a debtor to refinance at a reduced interest rate and the government secures the loan. If you are able to refinance and you want to stay in your home, that is the way to go.
2. Deed in lieu of foreclosure is an agreement between the debtor and the bank or note holder where the owner agrees to surrender the property and the bank agrees not to pursue a judgment against the borrower. A judgment in excess would be the difference between what the foreclosed home sold and what the bank is owed, including late fees, interests and attorney fees. It is not uncommon for an owner to owe hundreds of thousands of dollars after a foreclosure process. 
3. Short sale is an agreement between the owner and a bank that if the owner sells the home for market value, the bank agrees to waive collection proceedings for an excess judgment against the owner. For many a short sale is the best way to escape their losses and stop the bank from foreclosing on the property if credit has already been compromised.
In Brevard County, Florida there are hundreds of houses in foreclosure for sale. Many make the mistake of thinking, "My credit is already trashed, I might as well walk away." What one may not realize is that on top of all the late payments, a foreclosure is then entered into a credit file and lowers the score a vast amount more than the rolling 30's, 60's, 90's and 120 day lates. Meaning each late payment (more than 30 days) lowers a credit score and then enter the actual foreclosure judgment lowers it a huge amount more. It takes a very lengthy amount of time to rebuild credit.
Consider a short sale for the property. If you have any further questions, contact JoAnn Young, Realtor, 321-243-4917, email me here.
