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Critical SLG Client Alert: Mandatory Mortgage Mediation Program in N. Dist. of CA, Effective August 1. Register now!!!
July 14, 2015
SLG Client Alert.
From: Spencer Scheer
Subject: Mandatory Mortgage Mediation Program: N. Dist. of CA.
Any lender with loans on property subject to a bankruptcy in the Northern District of California, must be prepared for mandatory mediation, effective Aug 1, 2015! You should also read the attached summary. Some things to note are:
- Mediation is mandatory, not optional.
- All affected lenders must register on the Court approved portal, use required software, and have their modification documents ready to go.
- Referral to the mediation program will stay or obviate any pending motion for relief.
- Chapter 13 Plans subject to the mediation program will not be confirmed until the mediation issues are resolved.
- Lenders and their counsel can appear at a mediation. If you are considering attending without counsel, train a specialist now.
- Once referred to mediation, any post-petition mortgage payments will be made to the Trustee and may end up returned to the Debtor if mediation is not successfully and the case is dismissed.
I strongly suggest that any lender that regularly is subject to bankruptcy filings in the N. District of CA, register on the Court portal now, and get required training. Registration is a one-time event and you will avoid having to “scramble” later on
SLG will act as lender counsel in any mediation matter when requested by our clients. If you want to register and want SLG to register as your counsel, please contact me or Joshua Scheer. If you have any questions, please call me.
